I.

Law of Taxation

Q.1) Explain the Procedure of filing Income Tax Return & importance of timely filing

Procedure for Filing Income Tax Return

The purpose of this article is to explain the procedure for filing an income tax return for different
types of taxpayers.

Individuals and Hindu Undivided Family

Manner of filing income tax return for individuals and HUFs will depend upon the conditions
specified, which are as follows:

If Accounts are Audited under Section 44AB

Individuals or Hindu Undivided Family whose accounts must be audited under Section 444AB of
the Income Tax Act needs to furnish returns electronically under a digital signature.

Super Senior Citizen

Where the total assessable income during the previous year of a person being an individual of
the age of 80 years or more; or whose income doesn't exceed 5 lakh rupees, where no refunds
are claimed in the returns of income, as well as those who furnished the return in Form ITR-
1 or Form ITR-4, may file their returns in any of the following manner:

 Electronically under digital signature.

 Transmission of data in the return through electronic means under an electronic
verification code.
 Transmission of data in the return through electronic means followed by verification of the
return in Form ITR-5.
 Paper form.

All Other Cases

In any other cases, the filing of income tax returns in case of individuals and HUFs can be done
through the following means:

 Electronically under digital signature.

 Transmission of data in the return through electronic means under an electronic
verification code.
 Transmission of data in the return through electronic means followed by verification of the
return in Form ITR-5.

Firm/Limited Liability Partnership/Companies

Let us now review the provisions of filing of income tax returns of a firm/limited liability
partnership (LLP)/companies other than those mentioned thus far who must file ITR-5 return
filing . Corporate taxpayers should note that all types of companies including private limited
company, one person company and limited company must file income tax returns electronically
using a digital signature.

Accounts audited under Section 44AB

If accounts are required to be audited under Section 44AB, then income tax return must be filed
electronically under a digital signature.
Other Cases

In any other case, any of the following methods can be adopted by the assessee for filing an
income tax return:

 Electronic filing under a digital signature.

 Transmission of data in the return through electronic means under an electronic
verification code.
 Transmission of data in the return through electronic means followed by verification of the
return in Form ITR-5.

Furnishing of Returns in Form ITR-7

Let us now examine the various aspects of ITR-7, those factors which determine its
methodology.

Political Party

Political parties shall file their returns electronically under a digital signature.

Other Cases

In any other cases related to Form ITR-7, any of the following methods may be accepted.

 Electronic filing under a digital signature.

 Transmission of data in the return through electronic means under an electronic
verification code.
 Transmission of data in the return through electronic means followed by verification of the
return in Form ITR-5.

Latest Update on the Pay Later Option for Income Tax Filing
The Income Tax e-filing portal has recently rolled out a 'Pay Later' option, allowing you to
complete your tax filing process before making any tax payments. You can pay taxes after you
are done filing. For additional information, please refer to our guide

Duties of an Authorized Representative in relation to Filing of Returns

Every assessee would have an authorized representative, who prepares the returns of income
furnished by the assessee. He/She shall, either before making his appearance to a specified
jurisdictional officer or immediately after making an appearance, furnish to the particular officer:

 Particulars of accounts, statements or other documents supplied to him by the assessee

for the purpose of preparation of return of income.
 Any examination of accounts, statements or documents; as well as reports on the scope
and result of the examination.

Importance of Timely Filing of Income Tax Return

Filing ITR on time is crucial for several reasons:

1. Avoid Penalty and Interest

 If you miss the deadline for filing your return, you will be liable to pay a
penalty under Section 234F of the Income Tax Act. The penalty can range
from ₹1,000 to ₹10,000 depending on the delay.
  If you have tax dues and you file late, interest is charged under Section
234A, which compounds the amount payable.

2. Claim Refunds Timely

 Filing your return on time ensures that if you are eligible for a tax refund,
it will be processed without delay. The Income Tax Department typically
processes refunds for returns filed on time faster.

3. Maintain a Good Financial Record

 Timely filing creates a good financial record, which is useful for applying
for loans, visas, and other legal or financial purposes. Lenders and
financial institutions often check whether you are a compliant taxpayer.

4. Avoid Legal Issues

 Late filing or non-filing of returns can lead to legal complications. The

Income Tax Department may initiate a scrutiny or investigation into your
financial affairs, which can be time-consuming and cause unnecessary
stress.

5. Carry Forward Losses

 If you file your return after the due date, you lose the benefit of carrying
forward certain losses (such as capital loss or business loss) to the next
assessment year. Filing on time allows you to set off these losses against
future income.

6. Compliance with Tax Laws

 Filing returns on time is a legal requirement. Being compliant with tax

laws prevents the risk of facing prosecution or penalties for non-
compliance.

7. Avoid Delays in Processing

 Timely filing helps in quicker processing of returns. Late submissions

may lead to delays in receiving any refunds or other necessary actions
from the tax authorities.

Conclusion

Filing an Income Tax Return is an essential part of an individual’s or entity's

financial obligations. The process of filing is made simpler through the Income
Tax e-filing portal, and adhering to the deadlines ensures compliance with the
law and the avoidance of penalties. Timely filing also helps claim refunds, carry
forward losses, and maintain a clean financial record. Therefore, it is highly
important to file your returns before the due date to avoid any unnecessary
complications and benefit from a smooth tax process.
Q.2) Discuss the different types of Assessment under the Income Tax Act &
their Significance

WHAT IS ASSESSMENT IN INCOME TAX?

According to the provisions of the Income Tax Act 1961 , if an individual’s

earnings exceed the basic exemption limit, they must file income tax returns.
The new tax regime sets the basic exemption limit at Rs. 3 Lakhs for individuals
under the age of 60 years. Therefore, any person earning above Rs. 3 Lakhs in a
given financial year, must self-determine their tax liability and file their ITR.
Once the ITR is filed, the income tax department examines the accuracy of the
income details included. This scrutiny and review of ITRs by the income tax
authorities is termed as income tax assessment. Income tax assessment
procedures evaluate the returns filed by the taxpayer under different conditions
and provisions. Accordingly, there are various types of assessments in income
tax.

UNDERSTANDING DIFFERENT TYPES OF INCOME TAX ASSESSMENT

Under the Income Tax Act, 1961, the process of assessing the income of a
taxpayer is conducted by the Income Tax Department through different types of
assessments. These assessments are intended to determine the correct tax
liability of the taxpayer and ensure compliance with the tax laws. Here is a
discussion of the different types of assessments under the Income Tax Act
along with their significance:

1. Self-Assessment (Section 140A)

Overview: Self-assessment is the process wherein a taxpayer calculates their

own tax liability and pays the tax voluntarily. It is done by the taxpayer while
filing their Income Tax Return (ITR). The taxpayer has to ensure that the return
is filed correctly, with all income declared, and the correct amount of tax is
paid.

Significance:

 Voluntary Compliance: It promotes a culture of voluntary compliance by

the taxpayer.

 Convenience: It is a straightforward process where the taxpayer is

responsible for determining their own tax liability.

 Timely Payment: Ensures timely payment of taxes before filing the

return.

 Reduction of Taxpayer Burden: Relieves the tax authorities from having

to verify every return in detail.

2. Summary Assessment (Section 143(1))

Overview: Summary Assessment is an initial stage of assessment carried out

by the Income Tax Department after the taxpayer files the return. It is done
without detailed scrutiny of the return and is mostly done on the basis of the
information provided in the return, such as Form 16, Form 26AS, and other
details. If there is any discrepancy, the taxpayer may be asked to provide
additional details.

Significance:

 Quick Processing: It helps in quick processing of returns and issues any

refunds due to the taxpayer without delays.

 Routine Check: Ensures that the taxpayer has complied with basic tax
rules (e.g., filing the return, paying tax, etc.).

 Identification of Errors: Identifies any arithmetic errors or other

discrepancies in the return that require rectification.

 No Detailed Scrutiny: It doesn't involve in-depth examination of the

taxpayer’s financial records.

3. Scrutiny Assessment (Section 143(3))

Overview: Scrutiny Assessment is a more detailed and in-depth examination of

a taxpayer's return and financial records. This type of assessment occurs when
the Income Tax Department believes that the information provided by the
taxpayer may not be accurate or complete. The tax authorities scrutinize the
return to ensure that the correct amount of tax is being paid.

Significance:

 Prevents Tax Evasion: It helps in identifying instances of underreporting

of income, inflating deductions, or other forms of tax evasion.

 Accurate Taxation: Ensures that the correct amount of tax is paid based
on a thorough examination of the taxpayer’s documents, books, and
records.

 Transparency and Accountability: Forces the taxpayer to maintain

accurate and verifiable records to avoid penalties.

 Compliance with Tax Laws: Ensures that taxpayers are complying with
all the relevant provisions under the Income Tax Act.

4. Best Judgment Assessment (Section 144)

Overview: Best Judgment Assessment is carried out when a taxpayer fails to

file their return of income, doesn't cooperate during a scrutiny, or provides
incomplete information. In such cases, the tax authorities make an assessment
based on their judgment, using available data, previous records, and any other
information they can gather to estimate the taxpayer's income.

Significance:

 Protection of Revenue: Ensures that the tax authorities can still assess
and collect taxes even if a taxpayer is uncooperative or non-compliant.
  Prevents Evasion: Aims to minimize the chances of tax evasion or non-
payment of taxes by unreliable taxpayers.

 Final and Binding: The assessment made under this section is final and
binding unless rectified or appealed.

 Estimates Income: The department estimates the income based on

available data, so taxpayers cannot evade taxes by not filing returns or
failing to cooperate.

5. Reassessment (Section 147)

Overview: Reassessment is done when the Income Tax Department believes

that the original assessment was wrong due to some error or omission. It can
also be triggered if the taxpayer has failed to disclose material facts or has
hidden income. Reassessment can be done within 4 years from the end of the
relevant assessment year (6 years in cases of escaped income exceeding ₹1
lakh).

Significance:

 Rectifying Mistakes: Provides an opportunity to correct any errors made

during the initial assessment, ensuring fairness.

 Discovery of Escaped Income: Helps in discovering income that was

previously concealed or not disclosed during the original assessment.

 Ensures Justice: Ensures that taxpayers who have underreported

income or committed fraud are held accountable.

 Taxpayer Protection: Allows for a review of past assessments, ensuring

that no taxpayer avoids their fair share of taxes.

6. Rectification of Mistakes (Section 154)

Overview: Under this type of assessment, a taxpayer or the Income Tax

Department can request a correction of a mistake in the original assessment
order. This applies only to apparent mistakes that are clear and without the
need for detailed investigation, such as an arithmetic error or a mistake in
applying a provision of the law.

Significance:

 Error Correction: Ensures that any errors in the assessment (such as

miscalculations) are corrected promptly.

 Reduces Discrepancies: Helps in reducing discrepancies and confusion

regarding tax calculations.

 Faster Resolution: A speedy process for resolving mistakes without going

through a full re-assessment process.

7. Appeal and Revision

Overview: If a taxpayer is aggrieved by an assessment order, they have the
right to file an appeal with the Commissioner of Income Tax (Appeals) or
higher authorities such as the Income Tax Appellate Tribunal (ITAT). If a
mistake is noticed by the tax authorities, they can also revise an order under
Section 263.

Significance:

 Judicial Oversight: Ensures that the taxpayer's case is thoroughly

examined by a higher authority, providing an opportunity for justice if
they believe the assessment was wrong.

 Taxpayer Rights Protection: Safeguards the rights of taxpayers by

allowing them to challenge unfair or incorrect decisions.

 Legal Recourse: Provides taxpayers with a clear route to challenge tax

decisions if they feel the assessment was improper.

Conclusion

The different types of assessments under the Income Tax Act serve the crucial
purpose of ensuring that taxpayers correctly report their income and pay taxes
in a fair and transparent manner. They are designed to prevent tax evasion,
ensure the proper collection of taxes, and provide a means for both the tax
authorities and taxpayers to correct any errors or omissions. The significance of
these assessments lies in their ability to protect public revenue, ensure tax
compliance, and provide opportunities for review and redress, thus contributing
to the overall functioning of the country's tax system.

Q.3) Explain the Role & Powers of Income Tax Authorities, including
their duties & limitations

Role & Powers of Income Tax Authorities, Including Their Duties & Limitations

Income Tax authorities are responsible for the administration, enforcement, and
collection of taxes under the Income Tax Act, 1961. They are tasked with
ensuring compliance with tax laws, detecting fraud, and facilitating the
assessment and recovery of taxes. The powers granted to these authorities are
extensive, but they also have certain duties and limitations to ensure fairness
and transparency in the administration of tax laws. Below is a detailed
explanation of their role, duties, powers, and limitations.

1. Role of Income Tax Authorities

Income Tax authorities perform a vital role in maintaining the integrity and
effectiveness of the tax system. Their key functions include:

a) Tax Administration and Compliance

They are responsible for enforcing the provisions of the Income Tax Act,
ensuring that taxpayers comply with the law. This includes monitoring tax
filings, assessing taxable income, processing returns, and collecting taxes from
individuals and businesses.

b) Tax Assessment

Income Tax authorities assess the income of taxpayers and determine their tax
liabilities. They verify the income disclosed by taxpayers, scrutinize returns for
accuracy, and ensure that taxes are calculated correctly.

c) Tax Collection

They ensure timely collection of taxes from taxpayers, which can include
advance tax payments, self-assessment tax, and taxes withheld at source. They
are also responsible for the recovery of taxes due, if necessary.

d) Enforcement of Tax Laws

The authorities take action against tax evasion and fraud. They have the power
to issue notices, conduct searches, seize assets, and impose penalties for non-
compliance.

e) Dispute Resolution

They act as adjudicating bodies when there are disputes between taxpayers and
the tax department. This may involve assessing appeals, issuing refunds, or
modifying assessments.

f) Providing Guidance and Public Awareness

Income Tax authorities are also responsible for educating taxpayers, issuing
circulars, guidelines, and notices about changes in tax laws, and assisting them
with compliance.

2. Duties of Income Tax Authorities

The duties of Income Tax authorities include the following:

a) To Ensure Proper Administration of Tax Laws

Their primary duty is to administer the Income Tax Act, 1961, fairly and
equitably. This involves overseeing compliance, carrying out assessments, and
collecting taxes in line with the law.

b) To Ensure Fairness in Assessment

Income Tax authorities are duty-bound to ensure that all assessments and tax
decisions are made fairly, transparently, and without bias. This includes
providing reasons for assessments and giving taxpayers the opportunity to
respond to notices.
c) To Protect Taxpayer Rights

Authorities are responsible for ensuring that taxpayers' rights are upheld. They
should provide accurate and timely information, avoid unnecessary
harassment, and adhere to procedures as prescribed in the law.

d) To Ensure Transparency in the Tax System

They are required to maintain transparency in their operations. This includes

making tax laws and their application clear, as well as ensuring that the public
is aware of the processes involved in tax assessment and collection.

e) To Safeguard Against Fraud

Income Tax authorities must actively combat tax fraud and evasion. This
includes monitoring suspicious activities, investigating tax evasion schemes,
and taking corrective actions where necessary.

3. Powers of Income Tax Authorities

Income Tax authorities are granted broad powers under the Income Tax Act to
carry out their duties effectively. These powers include:

a) Power to Issue Notices (Section 139, 143)

 Section 139 allows authorities to issue notices to taxpayers to file their

returns or provide additional information.

 Section 143(2) gives them the power to issue notices to initiate scrutiny
assessments if a taxpayer’s return appears to be incorrect.

b) Power to Conduct Search and Seizure (Section 132)

 Authorities can conduct searches on individuals or businesses if there is

a suspicion of concealed income or tax evasion.

 Section 132 empowers them to seize documents or assets related to

undisclosed income or tax fraud.

c) Power to Make Assessments (Section 143, 144)

 They can assess income through regular procedures (scrutiny) or best

judgment assessments when returns are not filed or are incomplete.

 Section 144 allows for best judgment assessments when the taxpayer
has failed to provide accurate or complete information.

d) Power to Reassess Income (Section 147)

 If authorities believe that income has escaped assessment, they have the
power to reassess a taxpayer’s income under Section 147. This process
can occur within a period of 4-6 years from the end of the assessment
year.
e) Power to Summon Documents and Information (Section 133)

 Authorities can summon taxpayers or third parties to provide

information, documents, and evidence related to a taxpayer’s financial
dealings. This is done to verify the income and other financial details
provided in the tax return.

f) Power to Impose Penalties (Section 270A)

 Income tax authorities can impose penalties for the concealment of

income, failure to file returns, or any fraudulent behavior under Section
270A.

 Penalties may also be imposed if the taxpayer fails to comply with notices
or provide incorrect or misleading information.

g) Power to Recover Taxes (Sections 220–227)

 They can take steps to recover unpaid taxes, including issuing demands
for payment, garnishing wages, or even attaching bank accounts or assets
of the taxpayer.

h) Power to Freeze Assets (Section 281B)

 In cases where tax evasion is suspected, authorities have the power to

freeze assets or bank accounts to prevent the taxpayer from disposing of
assets before taxes are paid.

i) Power to Issue Refunds (Section 237)

 If a taxpayer has paid excess tax or there is a genuine mistake in the tax
assessment, authorities are required to issue refunds as per the
provisions of the law.

4. Limitations of Income Tax Authorities

Although Income Tax authorities have wide powers, they are also subject to
limitations to prevent misuse of power and ensure fairness:

a) Restrictions on Search and Seizure

 Search and seizure actions can only be carried out based on solid
evidence and prior authorization. The powers cannot be exercised
arbitrarily or without sufficient grounds under Section 132.

b) Time Limit for Reassessment

 The power of reassessment is not unlimited. Under Section 147, the

reassessment can only occur within a prescribed time frame (within 4
years of the assessment year, or 6 years in cases of substantial
underreporting).
c) Limitation on the Imposition of Penalties

 Penalties for non-compliance can only be imposed after due process, and
the authorities must provide evidence that the taxpayer deliberately
concealed income or evaded taxes. Under Section 270A, penalties can be
reduced if the taxpayer voluntarily discloses information before detection.

d) Judicial Oversight

 Income Tax authorities' actions can be reviewed by higher judicial

authorities such as the Commissioner of Income Tax (Appeals), Income
Tax Appellate Tribunal (ITAT), and ultimately, the courts. This ensures
that the powers of tax authorities are exercised within the framework of
the law.

e) Procedural Safeguards

 Tax authorities must follow the procedural safeguards set forth in the
law. For instance, taxpayers are entitled to be informed of the grounds for
assessment, penalties, or search, and to file appeals if they disagree with
the actions taken by tax authorities.

f) Protection of Taxpayer Rights

 The authorities cannot arbitrarily detain or seize assets without due

cause. Taxpayers also have the right to appeal against any unfair or
unlawful tax assessments, penalties, or other decisions.

5. Conclusion

Income Tax authorities play a crucial role in the administration of tax laws,
ensuring compliance, and enforcing the provisions of the Income Tax Act,
1961. Their duties and powers are designed to maintain an effective and
transparent tax system. However, there are safeguards and limitations built into
the system to protect taxpayers from misuse of power and to ensure fairness in
the administration of the law. Through a balanced exercise of their powers,
Income Tax authorities contribute to the integrity of India’s tax system while
safeguarding the rights of taxpayers.

Q. 4) Analyse the Appellate Process under the Income Tax Act,

including the role of Income Tax appellate Tribuanl (ITAT)

Appellate Process under the Income Tax Act: An Analysis

The Appellate Process under the Income Tax Act, 1961 provides taxpayers
with an opportunity to challenge assessments, orders, penalties, or any other
decision made by the income tax authorities. This process ensures that there is
a system of checks and balances in place, allowing taxpayers to seek redressal
and relief from perceived mistakes or injustices in the application of tax laws.
The appellate process is designed to provide taxpayers with a fair hearing and a
mechanism for the resolution of disputes without immediately resorting to
litigation in higher courts.
The appellate process under the Income Tax Act of India provides taxpayers
with an opportunity to appeal decisions made by the income tax authorities if
they believe those decisions are incorrect or unjust. This process ensures that
taxpayers have access to a higher forum to resolve disputes concerning
assessments, taxability, and other issues under the law. The role of the Income
Tax Appellate Tribunal (ITAT) is particularly significant in this process.

Here’s a detailed analysis of the appellate process, including the role of the
ITAT:

1. Initial Assessment

The first step in the process involves the Assessment made by the Assessing
Officer (AO). This is a review of the taxpayer's return, during which the AO may
accept the return or make an adjustment based on their assessment. If the
taxpayer disagrees with the assessment, they can proceed with an appeal.

2. First Appeal - Commissioner of Income Tax (Appeals) [CIT(A)]

If a taxpayer is dissatisfied with the assessment order passed by the AO, they
can file an appeal to the Commissioner of Income Tax (Appeals) (CIT(A)). The
appeal must generally be filed within 30 days from the receipt of the
assessment order.

The role of CIT(A) includes:

 Reviewing the facts of the case and the legal arguments made by both the
taxpayer and the assessing officer.
 Hearing the taxpayer's grievances regarding the assessment and making a
decision based on the merits of the case.
 CIT(A) has the authority to confirm, modify, or annul the assessment
order, but it cannot impose a new tax liability beyond the scope of the
initial assessment.

3. Second Appeal - Income Tax Appellate Tribunal (ITAT)

If the taxpayer or the assessing officer is dissatisfied with the decision of the
CIT(A), the next level of appeal is to the Income Tax Appellate Tribunal (ITAT).
The ITAT is a quasi-judicial body that hears appeals against the decisions of
the CIT(A). It is the final fact-finding authority and serves as an appellate forum
for both taxpayers and the tax department.

Key points about the role of ITAT:

 Jurisdiction: The ITAT is the final authority on factual issues. It can

review all types of orders including those related to income, tax, penalties,
and other aspects of the income tax law.
 Composition: The Tribunal consists of members who are appointed by
the President of the ITAT. These members are typically experienced in the
legal and taxation fields and include both judicial and accounting
members.
 Powers of ITAT: The ITAT can hear appeals and review the orders passed
by the CIT(A). It can either:
o Confirm the order of CIT(A),
o Modify it, or
o Set aside the order and send the case back to the CIT(A) for further
consideration.
 Appeal Procedure: Appeals to the ITAT must be filed in the form of a
memorandum of appeal. The appeal should generally be filed within 60
days from the receipt of the order passed by the CIT(A). Once filed, the
ITAT fixes a date for hearing the appeal.
 Legal Precedents: The ITAT's decisions help shape the interpretation of
various provisions under the Income Tax Act. Its rulings serve as
precedents for lower tax authorities and taxpayers to follow.
 No Fresh Evidence: The ITAT does not permit the introduction of new
facts or evidence that were not presented during the assessment or at the
CIT(A) level, unless there is a compelling reason.

4. Appeal to Higher Courts

In cases where the taxpayer or the tax department is dissatisfied with the ITAT’s
decision, they can approach higher courts, such as:

 High Court: The High Court can entertain appeals on substantial

questions of law. An appeal to the High Court must be filed within 120
days from the date of the ITAT's order.
  Supreme Court: The decision of the High Court can be further appealed
before the Supreme Court of India if the matter involves substantial
questions of law of national importance.

5. Role of the ITAT in the Appellate Process

The ITAT plays a crucial role in the appellate process. Its responsibilities
include:

 Fact-finding Authority: The ITAT is the highest fact-finding authority

and is empowered to examine all factual aspects of the case. It can either
uphold or reverse the findings made by lower authorities.
 Interpretation of Law: The ITAT, while deciding cases, interprets
provisions of the Income Tax Act, giving clarity on various legal issues,
thus contributing to the development of tax jurisprudence.
 Dispute Resolution: The ITAT serves as a critical platform for resolving
complex tax disputes, especially those involving intricate facts and the
application of law.
 Balancing Interests: The ITAT ensures that both the tax authorities and
taxpayers get a fair hearing. It ensures transparency and accountability
in the tax administration process.
 Efficiency: The ITAT is an independent body and aims to provide quicker
resolutions as compared to the regular courts, ensuring a faster
resolution of disputes.

6. Important Features of ITAT Proceedings

 Bench System: The ITAT operates with benches that are usually located
in different parts of India, such as Delhi, Mumbai, Kolkata, Chennai, etc.
The benches consist of judicial and accountant members.
 Appeal Procedure: The appeal to the ITAT is filed in a specific format and
is accompanied by the necessary fees. Both parties (the taxpayer and the
assessing officer) are given an opportunity to present their case.
 Decisions: The decisions made by the ITAT are typically published and
available for public reference, contributing to the development of tax law
in India.

7. Conclusion
The appellate process under the Income Tax Act of India ensures that taxpayers
have a legal pathway to challenge tax assessments and disputes. The Income
Tax Appellate Tribunal is a pivotal institution in this process, acting as an
intermediary between the tax authorities and the courts. Through its expertise
and jurisdiction, the ITAT plays a significant role in interpreting tax laws,
resolving disputes, and ensuring fairness in the administration of income tax in
India.

Understanding the appellate process and the role of ITAT is crucial for
taxpayers, tax professionals, and those involved in tax litigation to ensure that
they can navigate the complexities of the tax system effectively.

Case-Laws:

1. M/s McDowell Company Ltd. Vs. Commissioner of Income Tax,

Karnataka Central, Bangalore (Civil Appeal No. 3893 of 2006)

The case involves a dispute over the taxability of the waived liabilities in a situation where
McDowell & Company Ltd. (the appellant) had taken over a sick company (Hindustan
Polymers Ltd.) through a process of amalgamation under the relevant provisions of the Income
Tax Act, 1961. The issue revolved around the set-off of accumulated losses and whether the
waiver of a liability triggered taxable income under Section 41(1) of the Income Tax Act.

Facts of the Case:

1. Background:
o McDowell & Company Ltd. acquired Hindustan Polymers Ltd. (HPL) under a
scheme of amalgamation approved by the respective High Courts.
o HPL had accumulated unpaid liabilities (debts), which were subsequently waived
by the creditors as part of the financial restructuring.
o As per the terms of the Income Tax Act, the waiver of liabilities is considered
income under Section 41(1), which deals with the taxation of income arising
from the remission or cessation of liabilities.
2. Claim of McDowell:
o McDowell argued that as the successor company after the amalgamation, it
should be entitled to carry forward the losses of HPL and offset these against
future profits, including the waived liabilities. The company believed it should be
treated as a continuation of the business and should be allowed to offset the
waived liabilities (as income) against its accumulated losses under Section 72A.
3. Tax Authorities’ Argument:
o The tax authorities contended that Section 41(1) should apply to the waiver of
liabilities, and the waiver of liabilities in the case of HPL should be treated as
taxable income.
o Additionally, they argued that the set-off of accumulated losses under Section
72A was subject to restrictions, and any income arising from the waiver of
liabilities should be deducted from the carried-forward losses before applying
them to set off future profits.

Key Legal Issues:

 1. Whether the waiver of liabilities under Section 41(1) is taxable as income:
o Section 41(1) of the Income Tax Act provides that when a liability is waived, the
amount of the waived liability is treated as income in the year in which it is
waived.
o The core issue here was whether the waived liabilities (in this case, the debts of
HPL) would be treated as income in the hands of McDowell & Company Ltd.
following the amalgamation.
2. Set-off of HPL's losses under Section 72A:
o Section 72A of the Income Tax Act allows for the carry-forward and set-off of
accumulated losses and unabsorbed depreciation from a sick company against
future profits of the acquiring company (McDowell in this case).
o The key issue here was whether McDowell could apply the accumulated losses of
HPL against the waived liabilities as income.

Supreme Court’s Judgment:

The Supreme Court held the following:

1. Section 41(1) Does Not Apply to McDowell:

o The Court clarified that Section 41(1) applies to the company that incurred the
liability (in this case, HPL) and not to the successor company (McDowell) after
the amalgamation.
o Even though McDowell acquired the assets of HPL, the waived liabilities were to
be treated as income for HPL, not for McDowell. McDowell, as the successor, was
not liable to pay taxes on the waived debts as they were already treated as income
in the books of HPL.
2. Waiver of Liability as Income of HPL:
o The Court reiterated that the income arising from the remission of liability (i.e.,
the waived liabilities) must be treated as income in the hands of the company
which originally owed the debt, i.e., HPL, and not the successor company
(McDowell).
o Therefore, McDowell could not be taxed on the waived liabilities as it was not
liable to pay those debts.
3. Set-Off of Losses:
o Under Section 72A, McDowell was allowed to carry forward and set off the
accumulated losses of HPL against its future profits.
o However, the Court clarified that the waived liabilities (income) should be
deducted from the accumulated losses while making the set-off. This meant that
McDowell could not simply set off the full amount of HPL’s accumulated losses
against its profits without adjusting for the income arising from the waiver of
liabilities.

Key Legal Principles:

1. Applicability of Section 41(1):

o Section 41(1) of the Income Tax Act applies only to the company that originally
incurred the liability and not to the successor company after amalgamation.
2. Waiver of Liabilities as Income:
o When liabilities are waived, the amount waived is treated as income of the
company that originally owed the liability, in this case, HPL. The successor
company, McDowell, cannot be taxed on the waived debts.
3. Set-Off of Accumulated Losses:
o Section 72A allows McDowell to carry forward and set off the accumulated losses
of HPL, but this set-off must be adjusted by the income arising from the waived
liabilities.

Conclusion:
The Supreme Court’s judgment in the McDowell & Company Ltd. v. Commissioner of Income
Tax case clarified key issues regarding the taxation of waived liabilities and the carry-forward
of accumulated losses in the case of an amalgamation. It held that:

 Section 41(1) applies to the company that originally incurred the liability, not to the
successor company.
 The waiver of liabilities should be treated as income of the company incurring the
liability (HPL) and not the successor company (McDowell).
 McDowell was allowed to carry forward and set off the accumulated losses of HPL, but
the set-off should be adjusted by the income arising from the waived liabilities.

The judgment has significant implications for businesses involved in mergers and acquisitions,
as it establishes the treatment of waived liabilities in relation to amalgamation and income tax
implications.

Case-Law 2) Visvesraya Technological University Vs. Assistant

Commissioner of Income Tax (Civil Appeal Nos. 4361-4366 of 2016 arising
out of S.L.P. (C) Nos. 5354-5359 of 2014)

Facts of the Case:

 Visvesvaraya Technological University (VTU) is a public university in

Karnataka, established by the government of Karnataka. VTU is primarily
involved in education and research in engineering and technology.

 VTU received a notice from the Income Tax Department, claiming that it
was liable to pay income tax on the income generated from the services it
provided in relation to conducting examinations, issuing certificates, and
providing affiliated college services. Essentially, the Income Tax
Department argued that income earned by VTU from these activities was
taxable under the provisions of the Income Tax Act, 1961, as it was not
engaged in charitable activities or non-commercial activities.

 VTU contested the demand, asserting that it was a charitable institution

and its income should be exempt from tax under Section 10(23C)(iiiab)
of the Income Tax Act, which provides tax exemptions for educational
institutions that exist solely for educational purposes and not for profit.

Legal Issues:

The central issue in this case was whether Visvesvaraya Technological

University (VTU) is entitled to income tax exemption under the provisions of
the Income Tax Act. The specific issues raised were:

1. Whether the income generated by VTU from conducting examinations,

awarding degrees, and related activities is taxable.

2. Whether VTU, being a state-run public university, qualifies as an

educational institution under Section 10(23C)(iiiab) of the Income Tax
Act, and therefore, is entitled to an exemption from income tax on its
income.

Supreme Court‘s Judgment:

The Supreme Court of India in its judgment in Visvesvaraya Technological
University vs. Assistant Commissioner of Income Tax dealt with whether
VTU was entitled to tax exemption on the income it generated.

1. Nature of VTU‘s Activities: The Court emphasized that VTU was

primarily engaged in educational activities and operated as a non-profit
institution. The university was established under a state statute and
operated under the government of Karnataka. The activities of VTU were
focused on the promotion of education and advancement of learning
in the field of technology and engineering.

2. Income Tax Exemption under Section 10(23C)(iiiab): The Supreme

Court considered the provision of Section 10(23C)(iiiab), which grants
income tax exemptions to educational institutions that exist solely for
educational purposes and not for profit. The Court held that VTU’s
income from educational activities, including examinations, affiliation
fees, and related services, should qualify for tax exemption under this
section.

The Court ruled in favor of VTU, holding that the university was an
educational institution and its income, which was primarily used for
educational purposes, did not fall under taxable income. Therefore, VTU
was entitled to the tax exemption available to educational institutions
under Section 10(23C) of the Income Tax Act.

3. Clarification on Commercial Activities: The Court clarified that income

generated by the educational institution from commercial activities,
such as examination fees, affiliation fees, etc., does not automatically
disqualify the institution from being exempt under Section 10(23C)(iiiab),
as long as the activities are ancillary to the educational purpose and do
not convert the institution into a commercial venture.

4. Income used for Educational Purposes: The Supreme Court noted that
the primary objective of VTU was the promotion of education, and any
income generated was intended to further this educational goal. As long
as the institution remains non-profit and the income is used for
educational activities, it would be entitled to income tax exemption.

Conclusion:

The Supreme Court ruled in favor of Visvesvaraya Technological University

(VTU), holding that the university was entitled to an income tax exemption
under Section 10(23C)(iiiab) of the Income Tax Act. The court reiterated that
educational institutions that exist solely for educational purposes and not for
profit should not be taxed on the income they generate, provided that the
income is used for furthering their educational objectives and not for any
commercial or profit-making purposes.

This ruling is significant because it reaffirms the principle that educational

institutions, even if they generate revenue through activities like exams and
affiliations, can still qualify for income tax exemptions, as long as the core
objective remains education and the income generated is used for non-
commercial purposes.

Case-Law 3) The Commissioner of Income Tax-Bihar & Orissa Vs. Sri

Ramakrishna Deo (1958) INSC 100 (14th October 1958)

Case Title: The Commissioner of Income Tax-Bihar & Orissa vs. Sri Ramakrishna
Deo (1958)

Court: Supreme Court of India

Judgment Delivered by: Justice Venkatarama Aiyar

Background of the Case:

 The appellant, the Commissioner of Income Tax, Bihar & Orissa, filed this
appeal after the High Court of Orissa ruled that income from the sale of
trees in the forests of Sri Ramakrishna Deo, the respondent, was
agricultural income and thus exempt from taxation under section 4(3)(viii)
of the Indian Income-tax Act, 1922.

 The respondent is the proprietor of a large estate in the Koraput District

of Orissa, which consists of 12,000 square miles, including reserve and
protected forests. The estate derives income by selling timber, lac,
salwood, cashew nuts, and other forest products.

 The income from the sale of these products was recorded in the
respondent’s accounts, but the dispute was whether this income could be
considered agricultural income and hence exempt from tax.

Issue Before the Court:

 The main issue in the case was whether the income from the sale of trees
growing in the respondent’s forest was agricultural income and hence
exempt from taxation under section 4(3)(viii) of the Income-tax Act.

Arguments:

 Respondent‘s Argument: The respondent argued that the income derived

from these forests was agricultural income because the estate authorities
had engaged in maintaining and fostering the growth of the trees through
human intervention. The trees, which were being sold, had been planted
by the respondent’s estate authorities.

 Appellant‘s Argument: The appellant (Income-tax Department)

contended that the trees in question grew spontaneously (i.e., without
human intervention), and therefore, the income from the sale of these
trees did not qualify as agricultural income. The department held that
since the trees were not planted but grew naturally, they could not be
classified as agricultural income under the Act.

Tribunal's Findings:

 The Income-tax Officer initially ruled that the forests were not plantations
by the respondent but grew naturally. The respondent challenged this
 decision, presenting evidence, including a letter from the estate's Dewan,
detailing the maintenance and cultivation efforts.

 The Tribunal concluded that there were no direct records to show that the
respondent had planted the trees. However, they acknowledged that the
forests had undergone extensive destruction due to Podu (slash and burn)
cultivation, and there was no evidence to suggest the estate authorities
had engaged in significant planting before 1904.

High Court‘s Ruling:

 The High Court, while referring to the facts of Podu cultivation, concluded
that the forests were largely the result of spontaneous growth, even
though the estate authorities had undertaken extensive efforts for their
preservation.

 The High Court ruled in favor of the respondent, deciding that the income
derived from the forest was exempt from taxation under section 4(3)(viii)
of the Income-tax Act.

Supreme Court's Decision:

 The Supreme Court disagreed with the High Court’s reasoning. The Court
emphasized that the burden of proof lies on the respondent to establish
that the income was agricultural, and not on the department to prove it
wasn’t. The law clearly establishes that any exemption must be claimed
by the person seeking it.

 The Court pointed out that the Tribunal’s finding that the trees were of
spontaneous growth (i.e., not planted by the estate authorities) was a
finding of fact that could not be challenged. The Court also explained that
just because the estate engaged in activities like preservation and
maintenance, it does not automatically make the income agricultural if
the trees were not planted by human effort.

 The Court rejected the argument that the high expenses in maintaining
the forests indicated that the trees were planted by the respondent,
highlighting that such an argument lacked sufficient factual basis.

 The Court also referred to previous judgments, specifically the case of

Commissioner of Income-tax v. Venkataswamy Naidu (1956), where it was
ruled that it is the responsibility of the person claiming the agricultural
income exemption to prove it, and that income from spontaneous growth
of trees is not agricultural income.

 Final Decision: The Supreme Court allowed the appeal, set aside the
High Court’s ruling, and held that the income from the sale of trees was
not agricultural income. Therefore, it was taxable under the Indian
Income-tax Act.

Conclusion:
  Appeal Allowed: The Supreme Court ruled in favor of the appellant (the
Income-tax Department), holding that the income from the sale of trees in
the respondent’s forests was not agricultural income and was therefore
subject to tax.

*********************************END***********************************

II. Bharatiya Sakshya Adhiniyam (BNS)

Q.1) Analyse the Provision of Section 114 Regarding Presumption Of Fact

with Illustrations

Ans) Analysis of Section 114 of the Indian Evidence Act, 1872 (Bharatiya
Sakshya Adhiniyam) – Presumption of Fact

Section 114 of the Indian Evidence Act, 1872 (Bharatiya Sakshya Adhiniyam,
1872) addresses the presumption of facts in legal proceedings. This section
empowers the court to draw logical inferences about certain facts based on the
circumstances of a case, without direct evidence, and provides for presumption
based on common sense and experience of human conduct.

Text of Section 114 of the Indian Evidence Act, 1872 (Bharatiya Sakshya
Adhiniyam):

The provision of Section 114 reads:

“The Court may presume the existence of any fact which it thinks likely to have
happened, regard being had to the common course of natural events, human
conduct, and public and private business, in their relation to the facts of the
particular case.”

Key Features of Section 114 (Bharatiya Sakshya Adhiniyam):

1. Discretion of the Court:

o Section 114 grants discretion to the court to presume certain facts

that appear likely based on ordinary human experience and the
natural course of events. The court draws inferences based on
common sense, human conduct, and the functioning of public and
private business.

2. Nature of Presumption:

o This section deals with presumptions of fact, not of law. A

presumption of law is binding, whereas a presumption of fact is
not obligatory, and the court may choose whether to apply it in a
particular case. These presumptions are based on probabilities and
are a reflection of how events typically unfold in real life.

3. The Court's Power:

o The court has the authority to presume facts that are likely to have
occurred under certain circumstances, based on the course of
 natural events and the experience of how human beings generally
behave in similar situations.

4. Illustrations:

o Section 114 includes a set of illustrations to further clarify the

types of presumptions that may be made by the court. These
examples are practical applications of how the presumption may
work in various real-life situations.

Application of Section 114 in Court (Bharatiya Sakshya Adhiniyam):

 Section 114 allows the court to apply logical inference and

presumptions when direct evidence is not available. The court can use
these presumptions to make decisions about facts that are most likely to
have occurred based on the circumstances.

 Importantly, these presumptions are rebuttable. The person against

whom a presumption is made can provide contrary evidence to
challenge the presumption and disprove the fact that has been presumed.

For example, if a person is found with stolen goods, the court may presume the
person is guilty of theft. However, the accused can rebut this presumption by
providing an explanation for their possession of the goods, such as a lawful
reason.

Examples of Presumption under Section 114 (Bharatiya Sakshya

Adhiniyam):

1. Presumption of Death (Illness, Absence, or Lack of Contact):

o In cases where a person has been missing for a long time, often for
a period of seven years or more, and no one has heard from them,
the court may presume that the person is dead. This is based on
the presumption that people do not generally vanish without a
trace.

2. Presumption of Marriage (Family Law Cases):

o If a woman is living with a man as his wife, the court may presume
that they are legally married unless contrary evidence is presented.

3. Presumption of Paternity (Fatherhood):

o If a woman gives birth while living with her husband, the court may
presume that the husband is the father of the child. This
presumption is based on the common experience that a child born
to a married woman is likely fathered by her husband, unless
proven otherwise.

4. Presumption of Delivery (Documents):

o If a letter is posted, the court may presume that the letter was
delivered to the recipient, unless there is evidence to suggest that it
was not received.
Conclusion:

Section 114 of the Bharatiya Sakshya Adhiniyam, 1872 provides an important

legal tool for courts to draw inferences and make presumptions of fact based
on the likelihood of events happening, as judged by the common course of
natural events and human behavior. These presumptions help the court fill
gaps when direct evidence is not available.

In this way, Section 114 of the Bharatiya Sakshya Adhiniyam helps courts
use logical reasoning and experience to establish facts, ensuring a more efficient
and fair process when direct evidence is unavailable or difficult to obtain.

Q.2) What is Estoppel? Explain the Doctrine of Estoppel under Section 115
with its limitations & Exceptions

Estoppel:

Estoppel is a legal principle that prevents a person from denying or

contradicting a statement, action, or position that they previously established,
especially when another person has relied on it. In simpler terms, if someone
has made a statement or acted in a particular way in a legal or contractual
context, they cannot later claim the opposite if someone else has acted upon
that representation. It is a tool used to promote fairness and prevent
inconsistency.

Doctrine of Estoppel under Section 115 of the Indian Evidence Act

(Bharatiya Sakshya Adhiniyam, 1872):

Section 115 of the Indian Evidence Act, 1872 deals with the Doctrine of
Estoppel, which is based on the principle that a person should not be allowed
to go back on their representations if others have relied upon them.

The section reads:

"When one person has by his declaration, act, or omission, intentionally

caused or permitted another person to believe that a certain state of
things exists, and such other person has acted upon such belief, then the
first-mentioned person shall be precluded from denying that state of
things to be true."

Key Elements of Section 115:

1. Intention to Cause Belief:

o The person making the statement or taking an action must have

intentionally caused or permitted another person to believe in a
certain state of affairs. It is not enough for the belief to arise
inadvertently or accidentally.

2. Reliance on the Belief:

o The person relying on the representation (or action) must have

acted based on the belief that a particular state of affairs exists. For
 example, a person might make a statement to another, and the
second person takes actions based on that statement.

3. Preclusion from Denying the State of Affairs:

o Once a person has caused another to rely on a particular belief and

that belief has been acted upon, the first person is estopped from
denying the truth of that belief.

Example of Estoppel:

If a property owner allows someone to live on their land for a long period
without objection and the person builds a house on the land, the owner cannot
later deny the person's right to occupy the land. The person relied on the belief
that they had permission to stay.

Limitations of the Doctrine of Estoppel (Section 115):

While the doctrine of estoppel is intended to promote fairness, it has certain

limitations:

1. No Estoppel in Case of False Representation:

o Estoppel does not apply if the original statement or representation

made by the first person was false. If the state of affairs is not
actually true, the person making the false representation cannot be
precluded from denying it.

Example: If someone falsely claims ownership of a property and induces

another person to buy it, the buyer may not be precluded from claiming
ownership if it later turns out that the person had no ownership of the
property.

2. Estoppel Only Applies to the Parties Involved:

o Estoppel applies only to the parties who made the statement or

relied upon it. A third party who was not involved in the
representation or belief cannot be estopped from asserting their
own rights.

3. No Estoppel in Case of Law or Rights:

o Estoppel cannot apply to contradict or alter statutory rights or

rights given by law. It does not bar a person from asserting their
legal rights, even if they had previously acted in a way that was
inconsistent with those rights.

Example: A person may assert their legal right to contest the sale of a
property even if they had previously allowed someone to live on that
property.

4. It Does Not Apply to Future Conduct:

 o Estoppel prevents a person from contradicting a state of affairs that
already exists, but it does not prevent them from acting differently
in the future.

Exceptions to the Doctrine of Estoppel:

While estoppel has wide application, there are certain exceptions where it may
not apply:

1. Estoppel Does Not Apply to False Representations:

o If the representation made was false from the beginning, estoppel

cannot be invoked. The doctrine does not protect fraudulent or
dishonest behavior.

2. Estoppel Cannot Be Used to Overcome Statutory Provisions:

o If a statutory provision or law requires a certain act or behavior,

estoppel cannot be used to prevent someone from complying with it.
For example, a statutory requirement for registering a contract
cannot be defeated by estoppel.

3. Estoppel Cannot Preclude Claims of Fraud:

o If fraud is involved in the original representation, estoppel will not

prevent the defrauded party from seeking redress.

4. Estoppel Does Not Apply to Facts that Are Not Known:

o If the person relying on the representation was unaware of its false

nature or was unaware of certain facts that would have
contradicted the representation, estoppel does not prevent them
from asserting the true facts later.

5. Estoppel Does Not Apply to Defenses in Criminal Law:

o Estoppel is generally not applicable in criminal cases where a party

seeks to invoke it as a defense.

Conclusion:

The Doctrine of Estoppel under Section 115 of the Indian Evidence Act,
1872 (Bharatiya Sakshya Adhiniyam) prevents a person from denying a state of
affairs that they have represented as true, and on which another person has
relied. The doctrine ensures fairness in legal dealings by promoting consistency
and protecting parties who have acted based on another's representation.

The principle of estoppel plays a critical role in ensuring that people cannot
easily change their positions to the detriment of others who have relied upon
their prior statements or actions.
Q. 3) Discuss the Competency & Compellability of witness under sections
118-120. Write down the similar provisions of above 3 topics in BSA &
compare them

Ans) Competency and Compellability of Witnesses under the Indian

Evidence Act (Bharatiya Sakshya Adhiniyam, 1872)

Sections 118 to 120 of the Indian Evidence Act, 1872 (Bharatiya Sakshya
Adhiniyam, 1872) govern the competency and compellability of witnesses in
a court of law. These provisions set the guidelines for who can be called to
testify in a legal proceeding and under what conditions they can be compelled to
do so.

Section 118 – Competency of Witnesses

Section 118 of the Indian Evidence Act, 1872 provides for the competency of
witnesses. It stipulates that:

“All persons shall be competent to testify unless the Court considers that they are
incapable of understanding the questions put to them or of giving rational
answers to those questions.”

This provision establishes that:

1. General Rule of Competency: Every person is competent to testify

unless they cannot understand the questions or provide rational answers
due to some mental incapacity or other reasons.
2. Mental Capacity: Witnesses must be able to understand the nature of
the proceedings and respond coherently. If a witness is mentally
incapacitated or of unsound mind, they may not be allowed to testify.
3. Age or Knowledge: The section does not impose any age limit or require
any specific educational qualifications to be a competent witness.
However, if a minor or an illiterate person cannot understand the
questions posed or give rational answers, they may be deemed
incompetent.

Section 119 – Compellability of Witnesses

Section 119 of the Indian Evidence Act, 1872 addresses the compellability of
witnesses, particularly in the context of refusing to answer questions based
on self-incrimination. It provides that:

“A witness shall not be excused from answering any question as to any matter
relevant to the matter in issue in the case on the ground that the answer to that
question will tend to expose him to a penalty or forfeiture.”

Key points:
 1. Duty to Answer: A witness is compellable to answer all questions
related to the matter in issue in a case, except when the answer could
expose them to criminal liability (self-incrimination).
2. Self-Incrimination: If answering a question could potentially incriminate
the witness, they have the right to refuse to answer (protected by the right
against self-incrimination under Article 20 of the Indian Constitution).

Section 120 – Witnesses Not Excused from Answering Questions on

Grounds of Religious Belief

Section 120 of the Indian Evidence Act, 1872 states that:

“No witness shall be excused from answering any question on the ground that the
answer to such question would tend to degrade his character, or to violate his
religious beliefs.”

Key points:

1. Degrading Character: A witness cannot refuse to answer questions on

the grounds that answering might degrade their character.
2. Religious Beliefs: Similarly, a witness cannot refuse to answer questions
on the grounds that it would violate their religious beliefs.

Comparing the Indian Evidence Act (BSA) with Similar Provisions:

Now, let’s compare these provisions with the provisions of Bharatiya Sakshya
Adhiniyam (BSA), which is the Indian Evidence Act, 1872 in Hindi, keeping in
mind that the provisions are the same but there may be some variation in
language or interpretation.

1. Competency of Witnesses (Section 118) in BSA:

o BSA (Bharatiya Sakshya Adhiniyam, 1872) also adheres to the
general rule of competency where all persons are competent to
testify unless they are unable to understand the questions or
provide rational answers. The provision is identical to Section 118
of the Indian Evidence Act. In practice, the same principles of
mental capacity and rationality apply.

2. Compellability of Witnesses (Section 119) in BSA:

o BSA under Section 119 also mandates that witnesses must
answer questions relating to the matter in issue, with the
exception that they cannot be compelled to answer questions that
would incriminate them. This provision is identical to Section 119
of the Indian Evidence Act. The right against self-incrimination
remains protected under this section.
3. Refusal to Answer on Religious or Degrading Grounds (Section 120)
in BSA:
o Under Section 120 of the BSA, a witness cannot refuse to
answer questions on the grounds that answering would degrade
their character or violate their religious beliefs. This provision is
 identical in both the English version (Indian Evidence Act) and the
BSA, emphasizing the importance of providing truthful answers
regardless of personal beliefs or fear of character degradation.

Conclusion:

These provisions are consistent across the Indian Evidence Act (in both Hindi
and English versions), ensuring uniformity in the treatment of witnesses in legal
proceedings. The exceptions primarily focus on the right against self-
incrimination and the protection of religious beliefs and character.

Case-Laws

Case-Laws: 1) State of Maharashtra vs Praful Desai, 2003

State of Maharashtra v. Dr. Praful B. Desai (2003) 4 SCC 601

Brief Overview:

This landmark case addresses the admissibility of video-conferencing for

recording evidence in criminal trials. The Supreme Court ruled on whether
evidence could be recorded through video-conferencing in accordance with the
Criminal Procedure Code (CrPC), especially when a key witness could not attend
court due to health reasons.

Facts of the Case:

 Dr. Ernest Greenberg, a crucial witness for the prosecution in a criminal

case, was residing in the United States and was unable to appear in India
due to serious health concerns.

 The prosecution wanted to record his testimony through video-

conferencing.

 The defense objected, arguing that the evidence should be recorded in the
physical presence of the accused, as per Section 273 of the CrPC.

 The Bombay High Court had initially ruled against recording evidence
through video-conferencing, insisting that the witness must physically
appear in court for their evidence to be admissible.

 The prosecution appealed to the Supreme Court, challenging the High

Court’s order.

Legal Aspects:

1. Section 273 of the CrPC: It mandates that all evidence in criminal trials
must be recorded in the presence of the accused.

2. Section 165 of the Indian Evidence Act: This gives the judge discretion
to regulate the examination of witnesses, and it allows for the use of
technology if it aids in the administration of justice.
 3. Constitutional Interpretation: The case also raised the issue of whether
the technological advancement in the form of video conferencing could be
used while ensuring the rights of the accused were not compromised.

Arguments:

 For the Prosecution:

o The prosecution argued that due to modern technological advances,

it was possible to record testimony through video-conferencing,
which would ensure that the proceedings were fair.

o They emphasized that the witness could still provide testimony

under oath, and the accused would be able to cross-examine the
witness in real time.

o They argued that technological advances should not be ignored, as

they can aid in effective and timely administration of justice.

 For the Defense:

o The defense contended that the CrPC mandates physical presence

and that this could not be substituted by technological means.

o They argued that physical presence ensures the accused's right to a

fair trial, and video-conferencing might not allow proper cross-
examination or create a sense of the court’s authority over the
witness.

o They also raised concerns about the possibility of tampering or

manipulation of evidence in a virtual environment.

Judgment:

 The Supreme Court overruled the Bombay High Court’s decision, stating
that the physical presence of the witness could be substituted with the
use of video conferencing, provided the accused, their lawyer, and the
judge are present during the process.

 The Court noted that the word "presence" under Section 273 of the CrPC
does not mean physical presence alone. It can be interpreted as "virtual
presence" in the context of advancements in technology, such as video
conferencing.

 The Court acknowledged that video-conferencing would not violate the

accused’s right to a fair trial, as long as safeguards were in place, such as
ensuring that the accused and their counsel had the opportunity to
participate fully in the proceedings.

 The Court concluded that modern technology, when available, could be

used to record testimony without infringing on any legal provisions or
constitutional rights.
The Supreme Court also emphasized the role of technology in making the
judicial process more accessible and efficient.

Conclusion:

The State of Maharashtra v. Dr. Praful B. Desai case set an important precedent
in the Indian legal system. The judgment allowed video conferencing as a valid
method for recording testimony in criminal trials, especially in situations where
a witness could not be physically present. This decision broadened the
interpretation of "presence" under Section 273 of the CrPC, making it clear that
technological solutions, like video conferencing, could be used to administer
justice effectively. This ruling helped to modernize the judicial system and
opened the door for more accessible and efficient legal proceedings, especially in
complex or cross-border cases.

Case-Law 2) M. Nanavati Vs. State of Maharashtra, 1961

M. Nanavati v. State of Maharashtra (1961) 3 SCR 371

Brief Overview:

The M. Nanavati v. State of Maharashtra case is one of the most famous and
significant criminal trials in Indian legal history. The case involved the shooting
of a businessman, Prem Ahuja, by Commander K. M. Nanavati, an officer in the
Indian Navy. The case attracted widespread attention because of its sensational
nature and the involvement of a high-ranking officer in the military. It also led
to the landmark judgment that dealt with questions of self-defense, the right to
a fair trial, and the role of the jury system in India.

Facts of the Case:

 Incident: On 27th November 1959, Commander K. M. Nanavati, an

officer in the Indian Navy, found that his wife, Sylvia Nanavati, was
having an affair with Prem Ahuja, a wealthy businessman. After learning
about this, Nanavati confronted Ahuja at his house.

 The Shooting: During the confrontation, Nanavati shot and killed Prem
Ahuja with a pistol.

 Initial Defense: Nanavati initially claimed that he had shot Ahuja in a fit
of rage and in a moment of emotional distress after finding out about the
affair. He later argued that it was an act of self-defense, believing that
Ahuja might harm him in the altercation.

 Charge: Nanavati was initially charged with murder. His defense,

however, claimed that it was not premeditated but rather an impulsive act
due to the circumstances, making it a case of culpable homicide not
amounting to murder or a case of self-defense.

Legal Aspects:

1. Section 300 of the Indian Penal Code (IPC): Defines murder and
culpable homicide. Nanavati’s defense relied on the argument that the
 incident did not constitute murder but a case of culpable homicide not
amounting to murder.

2. Section 302 of the IPC: Deals with the punishment for murder. Nanavati
was charged under this section.

3. Jury System: At the time, India had a jury system for criminal cases. The
case was tried by a jury in the Bombay High Court, which led to
significant controversy regarding the outcome.

4. Self-defense: Nanavati’s defense argued that he was acting in self-

defense or, at the very least, that it was a crime of passion rather than
premeditated murder.

Arguments:

 For the Prosecution:

o The prosecution argued that the killing was premeditated and not
an act of self-defense. They emphasized that Nanavati had gone to
Ahuja's house with a gun, which showed the intent to kill.

o They claimed that Nanavati's defense of self-defense was

unsubstantiated and merely a post-facto justification for the
murder.

o They contended that the killing was intentional, as Nanavati shot

Ahuja after a brief conversation and had the opportunity to retreat,
which negated the claim of self-defense.

 For the Defense:

o The defense argued that Nanavati had acted in a fit of rage and was
emotionally disturbed after learning of his wife’s affair. He did not
premeditate the murder but acted impulsively.

o They also argued that Nanavati was acting in self-defense, fearing

that Ahuja might harm him during the confrontation, which led to
the shooting.

o The defense further pointed out that Nanavati was a man of honor,
and the circumstances surrounding the killing were a result of his
emotional distress.

Jury's Verdict and Controversy:

 The case was initially tried by a jury, which found Nanavati not guilty of
murder and instead returned a verdict of "not guilty" (acquitting him of
the charge of murder). The jury's decision was based largely on their belief
that Nanavati had acted in the heat of passion.

 However, this verdict sparked public controversy, with many questioning

whether the jury system had been influenced by public sympathy for
Nanavati, given his status as a naval officer.
  The prosecution was dissatisfied with the verdict and appealed to the
Bombay High Court.

Judgment:

 The Bombay High Court, after hearing the appeal, overturned the jury's
verdict and held that Nanavati was guilty of murder under Section 302 of
the IPC.

 The court concluded that Nanavati’s act was premeditated and did not
constitute self-defense. The court observed that he had ample opportunity
to retreat but chose to shoot Ahuja instead, which negated any claim of
self-defense.

 The court rejected the jury’s conclusion that Nanavati had acted
impulsively or in the heat of passion. The court also criticized the jury’s
verdict, suggesting that the acquittal may have been influenced by factors
unrelated to the law, including public sentiment.

Conclusion:

 The M. Nanavati v. State of Maharashtra case is notable for several

reasons:

o End of the Jury System: Following this case, the jury system in
criminal trials was abolished in India. The judgment led to concerns
about the potential for jury decisions to be influenced by public
opinion and emotion, especially in high-profile cases.

o Self-defense and Premeditation: The case clarified the legal

interpretation of self-defense, premeditation, and culpable
homicide.

o Legal Precedent: The ruling emphasized that a crime must be

judged based on its facts and evidence, not on the personal
character or public sympathy for the accused.

In essence, the Nanavati case was a turning point in Indian legal history. It
ended the jury system and contributed to the development of criminal
jurisprudence, particularly regarding the standards for self-defense and the
nature of premeditated crime. The case remains a reference point in legal
discussions around criminal law, especially homicide.

Case-Laws: 3) Hanumant Singh Vs. State of Madhya Pradesh, 1951

Hanumant Singh v. State of Madhya Pradesh (1951) AIR 253

Brief Overview:

The Hanumant Singh v. State of Madhya Pradesh case is significant for its
contribution to the legal interpretation of circumstantial evidence in criminal
law. The Supreme Court held that conviction based on circumstantial evidence
requires a higher degree of scrutiny and the chain of evidence must be complete
and unbroken to ensure that the circumstances are consistent with the guilt of
the accused.

Facts of the Case:

 Hanumant Singh was accused of the murder of a woman. The

prosecution's case was based on circumstantial evidence, as there were
no direct eyewitnesses to the crime.

 The woman was found dead, and there was evidence to suggest she had
been strangled. It was believed that Hanumant Singh had a motive due to
a previous relationship with the woman.

 The prosecution’s case relied on circumstantial evidence, such as the

accused's proximity to the crime scene and certain physical evidence
linking him to the death.

 The trial court convicted Hanumant Singh based on the circumstantial

evidence presented.

Legal Aspects:

1. Circumstantial Evidence: The case is particularly important in the

context of how circumstantial evidence should be treated in criminal
trials. The Supreme Court emphasized that a conviction based solely on
circumstantial evidence must meet specific criteria.

2. Section 3 of the Indian Evidence Act: This section defines "evidence" as

the means by which an alleged matter of fact is established. The case
raised questions about how circumstantial evidence could establish guilt.

3. Principle of ‗Last Seen‘: The principle of “last seen” refers to the accused
being seen in the company of the victim shortly before the crime. This
principle was significant in the case.

Arguments:

 For the Prosecution:

o The prosecution argued that Hanumant Singh was the last person
seen with the woman before her death, and circumstantial evidence
suggested that he had a motive and opportunity to commit the
crime.

o They pointed to his previous relationship with the woman and the
evidence of strangulation, which was consistent with his possible
involvement.

o The prosecution contended that, even though there were no

eyewitnesses, the chain of circumstances pointed towards the guilt
of the accused.

 For the Defense:

 o The defense argued that circumstantial evidence alone was
insufficient to convict the accused.

o They emphasized that there were no direct witnesses or clear

evidence directly linking Hanumant Singh to the crime.

o They also pointed out that the prosecution's case was based on
assumptions and not on conclusive proof.

Judgment:

 The Supreme Court, in its judgment, ruled that circumstantial evidence

must be reliable and complete, and the facts must be consistent only
with the guilt of the accused and exclude any reasonable hypothesis of
innocence.

 The Court stated that in order for circumstantial evidence to lead to a

conviction, the following criteria must be met:

1. The circumstances should be consistent with the guilt of the

accused and not merely suggestive of suspicion.

2. The facts should be linked together in a chain, leaving no

reasonable doubt about the guilt of the accused.

3. The circumstances should exclude any hypothesis of

innocence.

 In Hanumant Singh's case, the Supreme Court found that the

circumstantial evidence presented was not sufficient to establish a
complete chain of events leading to his guilt. There were missing links,
and the circumstances did not conclusively prove his involvement in the
crime.

 Result: The Supreme Court acquitted Hanumant Singh, ruling that the
prosecution had failed to prove its case beyond a reasonable doubt. The
judgment emphasized the importance of a complete and unbroken chain
of circumstantial evidence for a conviction in criminal cases.

The Hanumant case laid down the 5 golden principles which constitute the
panchsheel of the proof of a case based on circumstantial evidence. These 5
principles are as follows:
1. Circumstances from which the conclusion of guilt is to be drawn should be
fully established.
2. Fact so established should not be explainable on any other hypothesis except
that accused is guilty.
3. Facts should be of conclusive nature.
4. The fact should exclude every possible hypothesis except the one to be
proved.
5. There must be a chain of evidence so complete as not to leave any reasonable
ground for the conclusion consistent with the innocence of the accused and
must show that in all human probability the must have been done by the
accused.

Conclusion:

The Hanumant Singh v. State of Madhya Pradesh case is a crucial one in Indian
criminal law, particularly in the context of circumstantial evidence. The ruling
reinforced that circumstantial evidence must be complete, reliable, and
conclusive. It laid down the principle that in criminal trials, the chain of
circumstances must point exclusively to the guilt of the accused, leaving no
room for any reasonable doubt. The case has been cited in numerous
subsequent decisions, making it a significant precedent in the interpretation of
circumstantial evidence in Indian law.

****************END******************
III. Women & Child

Q. 1) Write in detail Offences related to Marriage under Section 85 of BNS 2023

The Bharatiya Nyaya Sanhita, 2023 (BNS), India's proposed criminal code,
introduces several provisions addressing offences related to marriage. These
provisions aim to protect individuals within the institution of marriage and
ensure justice in cases of abuse or deceit. Below is a detailed overview of the
relevant section.

Section 85 of the Bharatiya Nyaya Sanhita, 2023 (BNS) addresses

"Kidnapping, Abducting, or Inducing Woman to Compel Marriage".

This provision deals with the illegal acts of kidnapping, abducting, or coercing a
woman with the intention of compelling her to marry against her will. Such acts
are considered grave violations of personal freedom and autonomy, and the law
seeks to prevent these forms of coercion within the institution of marriage.

Detailed Explanation of Section 85:

Prohibition of Kidnapping or Abduction for Marriage:

 Kidnapping or Abducting a Woman: Section 85 criminalizes the act of

kidnapping or abducting a woman for the purpose of forcing her into
marriage. It targets situations where a woman is taken against her will
and made to marry someone, often through force or coercion.

 Inducing a Woman to Marry Against Her Will: The section also

penalizes individuals who induce, persuade, or lure a woman to marry
someone without her consent. This could involve emotional manipulation,
threats, or deceit to compel the woman into marriage.
Punishment for Offense:

 The punishment prescribed for committing an offense under Section 85 is

imprisonment for a term which may extend to ten years, along with
a fine. This punishment reflects the seriousness with which the law views
such crimes, given the severe violation of personal autonomy and the
potential harm caused to the woman.

Scope of the Offense:

 Kidnapping generally refers to forcibly taking someone away from their

home or family, often without their consent, and the act can have serious
emotional, psychological, and physical effects on the victim.

 Abduction is similar but might also include instances where the victim is
deceptively lured away, such as through promises, lies, or by taking
advantage of the victim’s trust.

 Inducing to Marry refers to influencing or pressuring a woman to marry

someone, often through manipulation, false promises, or threats. This
could happen without the use of physical force but still leads to the
woman being coerced into a marriage she does not want.

Intent and Context:

 The key element in Section 85 is the intent to compel a woman to

marry. The law targets those who exploit vulnerable women and coerce
them into unwanted marriages, whether by kidnapping, abduction, or
other means of manipulation.

 It covers various circumstances where the woman may be forced into

marriage, including but not limited to cases of trafficking, coercion by
family members or relatives, or when the woman is placed in a situation
where her consent is not freely given.

Why This Section Was Introduced:

 This provision was introduced to protect women from forced marriages

and abductions, both of which can have life-altering consequences for the
victim. Such marriages are often characterized by emotional, physical,
and sexual abuse, and the law aims to prevent such situations.

 Additionally, this section also acts as a deterrent against human

trafficking and exploitation. In many cases, women who are abducted
or coerced into marriage may be subjected to further abuse, including
violence, forced labor, or even sexual slavery.

Key Points of Concern:

1. Protection of Women‘s Autonomy: The law emphasizes the right of a

woman to choose her partner and not be forced into a marriage she
does not desire. Forced marriages are a violation of human rights and
personal freedom.
 2. Gender Sensitivity: Section 85 addresses gendered violence and
discrimination by specifically focusing on women and protecting them
from gender-based violence in the form of forced marriage.

3. Deterrent Effect: The severe punishment (up to ten years of

imprisonment) is aimed at acting as a strong deterrent for anyone who
might attempt to forcibly marry a woman or coerce her into marriage.

Conclusion:

Section 85 of the BNS 2023 recognizes the seriousness of forced marriages

and provides a clear legal framework to penalize those who engage in the
unlawful act of kidnapping, abduction, or inducing a woman to marry against
her will. It aims to safeguard women‘s dignity, autonomy, and freedom of
choice while also taking action against those who attempt to exploit or
manipulate vulnerable individuals into unwanted marriages. The law ensures
that any person committing such acts is held accountable through stringent
legal provisions and punishments, reflecting the state's commitment to
protecting women‘s rights and ensuring justice for such heinous crimes.

Q. 2) Medical Termination of Pregnancy Act 1971

The Medical Termination of Pregnancy Act, 1971 (MTP Act)

The Medical Termination of Pregnancy Act, 1971 is a significant piece of

legislation in India that regulates the conditions under which a woman may
undergo an abortion. The Act was enacted to provide women with the legal right
to terminate a pregnancy under certain circumstances, thereby ensuring
women's reproductive rights and their access to safe medical procedures.

Here’s a detailed overview of the Medical Termination of Pregnancy Act,

1971:

Objective of the MTP Act:

The primary objective of the MTP Act was to:

 Safeguard women‘s health: By providing a safe and regulated framework

for medical abortion.

 Prevent unsafe abortions: Reduce the occurrence of unsafe, illegal

abortions that were common prior to the Act’s enforcement, which often
led to serious health complications and even death.

 Respect women's autonomy: Allow women the right to decide about

their reproductive health and access legal abortion in certain
circumstances.

Key Provisions of the MTP Act:

1. Grounds for Medical Termination of Pregnancy (Section 3)

The MTP Act allows for abortion under specific conditions. A pregnancy can be
terminated if:

 Risk to the life of the woman: If continuing the pregnancy poses a risk
to the life of the woman, the pregnancy may be terminated.

 Risk to physical or mental health: If there is a risk to the woman's

physical or mental health due to the pregnancy, an abortion may be
carried out.

 Risk to the child: If there is a substantial risk that the child, if born,
would suffer from serious physical or mental abnormalities, abortion is
permitted.

 Pregnancy due to rape or incest: If the pregnancy is the result of rape or

incest, it is grounds for termination.

2. Time Limit for Medical Termination (Section 3)

 Up to 12 weeks: A pregnancy can be terminated up to 12 weeks of

gestation with the approval of one medical practitioner.

 Between 12 to 20 weeks: Termination can occur only with the approval

of two medical practitioners if the continuance of the pregnancy poses a
risk to the woman's health or there are abnormalities in the fetus.

 After 20 weeks: Termination after 20 weeks is allowed only in cases

where the pregnancy poses a risk to the life of the woman or if there are
severe fetal abnormalities. However, there are strict conditions, and
medical approval from a panel of experts is required.

3. Consent Requirement (Section 3(4))

 Consent of the woman: The woman’s consent is mandatory for the

termination of the pregnancy. Even if the woman is a minor, her consent
is needed, although the guardian’s consent may be required in some
cases. In the case of a married woman, her husband’s consent may be
sought, though it is not compulsory for the woman’s right to terminate.

 In the case of minors: The consent of the guardian (parent or legal

guardian) is required for terminating the pregnancy of a minor.

4. Medical and Legal Conditions (Section 3(2))

 Medical practitioners: Only registered medical practitioners with the

necessary qualifications are authorized to perform abortions.

 Authorized establishments: The procedure must be carried out in

approved medical establishments such as hospitals or clinics that are
authorized by the government.
5. Conscientious Objection (Section 4)

Medical professionals who have a moral or religious objection to performing

abortions are allowed to refuse to perform the procedure. However, they are
required to refer the patient to another qualified professional.

6. Maintenance of Records (Section 5)

 Confidentiality: Healthcare providers must maintain records of every

medical termination of pregnancy performed. These records are
confidential and cannot be disclosed to unauthorized persons. This is to
ensure the privacy of the woman’s medical decision.

 Reporting requirements: Certain information about the abortions

performed must be submitted to the government for statistical and
monitoring purposes.

7. Penalties (Section 5)

The Act imposes penalties for unauthorized abortion. Anyone who performs an
abortion outside the prescribed conditions or carries out the procedure without
proper medical qualifications can face severe penalties, including:

 Imprisonment: The person can be sentenced to imprisonment for a

period of up to 2 years.

 Fines: Fines can also be imposed on individuals found guilty of carrying

out illegal abortions.

Recent Amendments to the MTP Act (2021 Amendment):

In 2021, the MTP Act was amended to expand the scope and improve
accessibility for women:

 Extended Time Limit: The amendment increased the time limit for
medical termination of pregnancy from 20 weeks to 24 weeks for special
categories of women, including survivors of rape and incest, minors, and
women with physical disabilities.

 Single Woman‘s Consent: The amendment further reinforced the right of

a woman to give her consent to terminate a pregnancy, ensuring her
autonomy in making reproductive decisions.

Impact of the MTP Act:

 Reduction in Unsafe Abortions: Since its enactment, the MTP Act has
significantly reduced the number of unsafe, illegal abortions performed in
India.

 Protection of Women‘s Health: The Act has helped ensure that women
can access safe and regulated abortions, thus protecting their health and
well-being.
  Empowerment of Women: By recognizing women’s right to choose, the
Act contributes to gender equality and women’s empowerment.

Conclusion:

The Medical Termination of Pregnancy Act, 1971, provides essential legal

protection to women, ensuring they have access to safe abortions under specific
circumstances. The Act has evolved over time to address changing needs and
protect women’s rights, autonomy, and health. It strikes a balance between
women's reproductive rights and societal safeguards, making it a cornerstone of
India’s approach to reproductive health. The 2021 amendment has further
strengthened this framework, giving women more control over their reproductive
choices while ensuring that medical procedures are safe and regulated

Q. 3) Write note on Glorification of Sati with all the details & Case-laws

Glorification of Sati: A Detailed Overview

Sati, also known as "suttee," refers to the historical and controversial practice
in some parts of India where a widow would self-immolate (or be forced to do so)
on her husband’s funeral pyre. Although the practice has been outlawed in
India, it has been a subject of intense debate, both in terms of its history and
the ways in which it has been glorified in some cultural and social contexts.

Glorification of Sati refers to the way in which some people or groups have
historically romanticized or justified the practice, often depicting it as an act of
ultimate devotion, sacrifice, or honor, while ignoring the inherent abuse,
coercion, and violence it involved. Despite being outlawed, the glorification of
Sati has persisted in certain parts of Indian society, whether through cultural
representations or social norms, which have sometimes seen this act as a form
of extreme piety.

Historical Context of Sati

 Origins and Practice: The exact origins of the practice are debated, but
sati appears to have been prevalent in parts of India as early as the 8th
century. It was most prominent in certain Hindu communities in
Rajasthan, Bengal, and other areas.

 Cultural and Religious Justifications: Sati was often depicted as a

woman’s sacred duty to follow her husband in death, which was
considered an act of purity and ultimate devotion. In certain cases, it was
said that the wife’s self-immolation would ensure her husband’s soul
ascended to heaven.

Glorification of Sati

The glorification of sati has been linked to a variety of cultural, religious, and
social factors:
 1. Religious Justifications: Some proponents of the practice believed that
the act was ordained by religious scriptures, particularly in certain
interpretations of Hindu texts. The act was often romanticized as an act of
ultimate devotion and honor.

2. Cultural Representations: Over time, various historical accounts,

literature, and artistic works depicted sati as an act of courage, even
heroism. This romanticized portrayal often overshadowed the forced or
coerced nature of the practice.

3. Social Norms: In some parts of India, the practice of sati was associated
with high social standing. Women who performed sati were considered to
attain a special status in society and were often revered. This social
pressure sometimes led women to undergo the practice, despite the
inherent danger.

4. Regality and Honour: In royal families, particularly in Rajasthan, sati

was often glorified as a symbol of regal honor. Women of the royal family
who chose to self-immolate were seen as maintaining the family’s honor
after the death of their husbands.

Legislative Action and Legal Prohibition of Sati

The practice of sati has been repeatedly condemned by reformers, scholars, and
the legal system. The British colonial government took the first step toward
outlawing the practice, and subsequent Indian legal reforms have continued to
condemn and outlaw the practice.

Key Legal Measures:

1. The Bengal Sati Regulation of 1829:

o The British East India Company under Lord William Bentinck

passed the Bengal Sati Regulation of 1829, which made it illegal
to practice or force a widow to undergo sati in Bengal. This was one
of the first official legal measures taken to abolish the practice.

o The regulation was the result of sustained efforts by social

reformers like Raja Ram Mohan Roy, who campaigned tirelessly to
end the practice, citing its harmful effects on women.

2. Indian Penal Code, 1860:

o The Indian Penal Code (IPC), introduced in 1860 under British

rule, made it a criminal offense to instigate or abet the practice of
sati.

o Section 309 of the IPC, while dealing with attempted suicide, and
later sections related to abettment also criminalized attempts to
force a widow into the practice of sati.

3. The Sati (Prevention) Act, 1987:

 o The most significant modern-day legal prohibition is The Sati
(Prevention) Act of 1987, enacted by the Indian Parliament to
prevent the glorification and practice of sati.

o This law makes it illegal to promote or glorify sati in any way,

including through media, films, or cultural depictions, and
criminalizes both the act of the woman committing sati and anyone
who abets or aids in the practice.

o Under the Act, life imprisonment and fines were imposed for
anyone found guilty of encouraging or abetting sati, including
individuals or groups involved in its glorification.

Case Laws Related to Sati

1. The Queen v. Nadiya (1830):

o This case was one of the earliest legal responses to sati in colonial
India. It involved the death of a woman who committed sati, and the
court tried to prosecute those who assisted or encouraged her act.

o The case helped set the precedent for legal action against those who
abet or glorify the practice.

2. In Re: Sati (1987):

o In 1987, the Supreme Court of India took suo-motu cognizance of

a case involving the glorification of sati in the state of Rajasthan.

o The case followed the notorious incident in Deorala, Rajasthan,

where Roop Kanwar committed sati in 1987 under suspicious
circumstances. The event gained media attention, leading to public
outcry.

o The Supreme Court of India condemned the glorification of sati

and emphasized that glorifying sati in public was illegal under the
Sati Prevention Act, 1987. The Court directed the government to
ensure that there would be no encouragement or promotion of the
practice.

3. Roop Kanwar‘s Case (1987):

o Roop Kanwar's death by sati in 1987 was the most controversial

and publicized incident that led to widespread national debate on
the issue. Despite the existence of the Sati Prevention Act, the act
was glorified by local communities, with some suggesting that she
was a willing participant.

o The incident led to the passage of strict measures and stricter

enforcement of the Sati (Prevention) Act.

4. The Sati (Prevention) Act, 1987 – Judicial Interpretation:

 o The Supreme Court of India in various cases has interpreted the
Sati (Prevention) Act, asserting that any form of glorification,
encouragement, or support for sati would be criminal. It also
emphasized that any traditional beliefs or customs that encouraged
the practice of sati would not be acceptable under Indian law.

o In the case of M/s. The Hindu, Rajasthan (1990), the Supreme

Court ruled that the press or media could not glorify or romanticize
sati or other harmful practices in any manner. The Court also
directed authorities to act promptly to stop such glorification.

Conclusion:

The practice of Sati has been condemned by the Indian legal system, and
extensive reforms have been made to abolish and prevent its practice and
glorification. Through legal measures such as the Bengal Sati Regulation of
1829, the Indian Penal Code of 1860, and the Sati (Prevention) Act of 1987,
India has taken significant steps to protect women's rights and eliminate the
coercive social and cultural pressures that once led to the practice.

However, the glorification of Sati, especially in rural or conservative areas,

continues to remain a social issue, often linked to cultural, religious, and
patriarchal systems. It is important to continue educating and raising
awareness about women's rights and the importance of equality, dignity, and
personal autonomy to ensure that such practices are not revived or celebrated
in any form.

Case-Laws 1) Hussainara Khatoon Vs. Home Secretary, State of Bihar

Hussainara Khatoon vs. Home Secretary, State of Bihar (1979)

Hussainara Khatoon vs. Home Secretary, State of Bihar (1979)

This landmark Supreme Court case focused on prisoners' rights, particularly regarding the right to
a speedy trial and protection against arbitrary detention.

 Facts: Hussainara Khatoon, along with others, was detained for over five years without trial. The
case highlighted prolonged detention of undertrials, violating their right to life and personal
liberty under Article 21 of the Constitution.
 Legal Issues: Violation of the right to life and personal liberty, right to a speedy trial, poor prison
conditions, and lack of legal aid for undertrials.
 Judgment:
o Recognized the right to a speedy trial as part of Article 21.
o Directed release of undertrials detained longer than the maximum sentence for their
alleged offenses.
o Called for prison reforms and legal aid for undertrials.
o Marked a milestone in Public Interest Litigation (PIL), with the Court taking suo motu
cognizance.
 Impact: The case led to significant reforms in India's criminal justice system, focusing on fair
trials, prison conditions, and legal aid.

Hussainara Khatoon vs. Home Secretary, State of Bihar (1979)

The Hussainara Khatoon vs. mHome Secretary, State of Bihar case is
considered a landmark judgment by the Supreme Court of India. It was pivotal
in advancing the cause of prison reform and safeguarding the fundamental
rights of prisoners, particularly concerning the right to a speedy trial and
protection against arbitrary detention. The case also marked a significant
moment in India’s judicial activism.

Brief Facts of the Case:

 Hussainara Khatoon, a poor woman, was arrested and imprisoned along

with several others in Bihar Jail in 1978.

 The key issue was that Hussainara Khatoon, along with other
undertrials, was detained for over five years without a trial. Many of
these undertrials were imprisoned for longer periods than the
maximum sentence for their alleged crimes.

 The case was brought before the Supreme Court of India as a Public
Interest Litigation (PIL) by Advocate S. N. Sinha, highlighting the
violation of the right to life and personal liberty under Article 21 of the
Indian Constitution.

Legal Issues:

The case raised several crucial legal issues:

1. Violation of the Right to Life and Personal Liberty (Article 21):

o The prolonged detention of individuals, including Hussainara

Khatoon, without a trial was challenged as a violation of Article
21, which guarantees ―no person shall be deprived of his life or
personal liberty except according to procedure established by
law‖.

2. Right to a Speedy Trial:

o The case questioned whether an accused person, particularly an

undertrial, has a right to a speedy trial. Prolonged detention
without trial was argued to be a violation of fundamental rights.

3. Conditions of Undertrials in Prisons:

o The poor and inhumane conditions under which undertrials like

Hussainara Khatoon were kept in jail were highlighted. This raised
concerns about their constitutional rights and the living
conditions in Indian prisons.

4. Right to Legal Aid:

o The case also brought attention to the lack of legal representation

for many prisoners, particularly the poor, who could not afford
lawyers to fight their cases.
Arguments:

 Petitioner‘s Argument (Hussainara Khatoon):

o The petitioner argued that the prolonged detention of undertrials

without trial violated their right to life and personal liberty under
Article 21.

o It was emphasized that many of the undertrials had been detained

longer than the maximum sentence for their alleged offenses,
which violated the principles of justice.

o The petitioners requested that the right to a speedy trial be

recognized as part of the fundamental rights guaranteed by the
Constitution and that the poor conditions of undertrials in jails be
remedied.

 Respondent‘s Argument (State of Bihar):

o The State of Bihar admitted that there were delays in trials, but
attributed them to administrative inefficiency and lack of legal
representation. However, it did not dispute the allegations
regarding the violation of prisoners' rights.

Judgment and Key Findings:

The Supreme Court delivered its judgment in 1979 with significant components:

1. Right to Speedy Trial (Article 21):

o The Supreme Court explicitly recognized that the right to a

speedy trial is an essential part of the right to life and personal
liberty under Article 21 of the Constitution.

o The Court ruled that prolonged detention of undertrials without

trial amounts to a violation of this right. Those detained for
excessive periods without trial must be released, unless the
government can provide valid reasons for their continued detention.

2. Delay in Trials:

o The Court observed that delays in trials were a serious issue

within the Indian judicial system, particularly for undertrials who
often remained in detention without their cases being decided.

o The Court held that detaining someone longer than the

maximum sentence for their alleged crime, even without
conviction, violated the basic principles of justice.

3. Release of Undertrials:

o The Court directed the release of several undertrials who had

been detained for longer than the maximum sentence for their
 alleged offenses unless the state could show valid reasons for their
continued detention.

4. Prison Reforms:

o The Supreme Court expressed concern over the poor living

conditions in prisons and the inhumane treatment of undertrials.
The Court directed the government to take necessary steps to
improve prison conditions.

o The Court also emphasized the importance of providing legal aid to

undertrials who could not afford to hire lawyers, recommending the
state to provide legal aid if necessary.

5. Public Interest Litigation (PIL):

o The case is significant because it marked one of the earliest uses of

Public Interest Litigation (PIL) in India. The Supreme Court took
suo motu cognizance of the case, recognizing the widespread issue
of undertrial prisoners‘ rights as a matter of public concern.

6. Reform in the Legal System:

o The judgment led to reforms in India’s criminal justice system,

particularly in ensuring that undertrials were given a fair and
speedy trial.

Conclusion:

The Hussainara Khatoon v. Home Secretary, State of Bihar case is

considered a landmark ruling in the history of prisoners' rights and criminal
justice reforms in India. The Court's recognition of the right to a speedy
trial as part of the right to life and personal liberty under Article 21
revolutionized the Indian criminal justice system.

The judgment had a broader impact on prison reforms, highlighting the need
for:

 Better legal aid.

 Improved prison conditions.

 Reduction in the backlog of cases.

Additionally, the case played a key role in the development of Public Interest
Litigation (PIL) in India, demonstrating the Court‘s willingness to intervene in
matters of public rights, even if individuals could not directly approach the
Court. It was also a turning point in pushing the Indian legal system toward a
more humane and just approach to criminal law, with lasting effects on
human rights and judicial activism.

Case-Law 2) T. Sareetha V.T. Venkat Subbaiah

Case: T. Sareetha v. T. Venkata Subbaiah (1983)
Court: Andhra Pradesh High Court
Date: 1st July 1983
Citations: AIR 1983 AP 356, AIR 1983 Andhra Pradesh 356, 1983 (2) DMC 172,
(1983) 2 CIV LJ 158, (1983) 2 ANDHLT 47, 1983 HINDULR 658

Facts of the Case

 Parties Involved:

o Petitioner: T. Sareetha, a South Indian film actress.

o Respondent: T. Venkata Subbaiah, from Cuddapah, Andhra

Pradesh.

 Marriage: Sareetha (aged 16) married Venkata Subbaiah on December

13, 1975, in Tirupathi. They lived together for six months in Cuddapah,
before moving to Madras (now Chennai) to stay near Sareetha's family.

 Separation: They separated after their stay in Madras. Venkata Subbaiah

returned to Cuddapah, while Sareetha stayed in Madras, and they never
reunited.

 Application for Restitution of Conjugal Rights: On January 1, 1981,

Venkata Subbaiah filed for restitution of conjugal rights under Section 9
of the Hindu Marriage Act, 1955, in the Cuddapah Court.

 Objection by Sareetha: Sareetha objected to the Cuddapah Court's

jurisdiction, arguing the petition should be filed in either Tirupathi
(marriage place) or Madras (last residence).

Legal Issues

1. Jurisdiction of Cuddapah Court: Whether the Cuddapah Court has

jurisdiction, given the couple's last residence was Madras.

2. Interpretation of Section 19 of the Hindu Marriage Act (HMA):

Clarifying where the couple’s last place of residence is under Section
19(iii) of the HMA and its impact on jurisdiction.

Arguments

 Petitioner (Sareetha): Sareetha argued the Cuddapah Court lacked

jurisdiction, as Section 19 of the HMA gives jurisdiction to the court
where the parties last resided together, which was Madras. She claimed
their stay in Cuddapah was brief and not permanent.

 Respondent (Venkata Subbaiah): Venkata Subbaiah argued that they

lived together in Cuddapah for six months after marriage, making it their
last place of residence. Their stay in Madras was temporary.

Judgment
The Andhra Pradesh High Court ruled in favor of Venkata Subbaiah, holding
that the Cuddapah Court had jurisdiction.
 1. Cuddapah as the Last Place of Residence: The court considered their
six-month stay in Cuddapah as the primary home, while their stay in
Madras was temporary.

2. Interpretation of Section 19: The court clarified that last residence

refers to a place of permanent or extended stay, not a temporary one.
Since Cuddapah was their permanent home after marriage, it was deemed
the last place of residence.

3. Matrimonial Home: The court confirmed that Cuddapah was their

matrimonial home, and Madras did not change this fact.

Conclusion
The Andhra Pradesh High Court affirmed the jurisdiction of the Cuddapah
Court, dismissing Sareetha's revision petition. It concluded that Cuddapah, not
Madras, was the place where the couple last resided together.

Case-Law 3) Gurbachan Singh v. Satpal Singh & Ors. (1989)

Brief Overview:

This case revolves around the tragic death of Ravinder Kaur, who allegedly
committed suicide due to harassment and cruelty by her in-laws over dowry
demands. Initially convicted by the Trial Court under Section 306 IPC (abetment
to suicide), the accused were acquitted by the High Court. However, the
Supreme Court overturned the High Court’s decision and reinstated the
conviction.

Key Highlights:

 Legal Issue: Abetment to suicide (Section 306 IPC).

 Factual Background: Ravinder Kaur faced cruelty, dowry harassment,

and accusations of carrying an illegitimate child.

 Trial Court Verdict: Convicted the accused under Section 306 IPC.

 High Court Decision: Acquitted the accused due to lack of evidence.

 Supreme Court Verdict: Reversed the High Court’s decision and restored
the conviction.

Facts of the Case:

1. Marriage and Harassment: Ravinder Kaur was married to Satpal Singh

in November 1982. Soon after, she was subjected to taunts, mental
cruelty, and demands for dowry by her husband and in-laws.

2. Allegations of Illegitimacy: The in-laws accused her of carrying an

illegitimate child, adding to her distress.
 3. Efforts of Reconciliation: Her father, Gurbachan Singh, tried to resolve
the issue. The in-laws assured no further harassment, and she was sent
back to her matrimonial home.

4. Final Events: Two days before her death, Ravinder Kaur complained to
her sisters about continued harassment. On June 25, 1983, she allegedly
committed suicide by setting herself on fire.

5. Medical Evidence: The post-mortem revealed second to third-degree

burns. There was a delay in informing her father, and no attempts were
made by the in-laws to save her.

6. Police Inaction: Initially, police did not register a case, and only after
intervention by the Superintendent of Police, an investigation
commenced.

Legal Aspects:

1. Section 306 IPC (Abetment to Suicide): The trial court found that
persistent cruelty and mental torture by the in-laws led to the suicide.

2. Section 113A of the Indian Evidence Act: Introduced in 1983, it allows

courts to presume abetment of suicide if a woman dies within seven years
of marriage due to cruelty. The Supreme Court held that though this
section was enacted after the incident, it was procedural and could be
applied retrospectively.

3. Burden of Proof in Criminal Cases: The court reaffirmed that in criminal

trials, guilt must be proven beyond reasonable doubt, but exaggerated
benefit of doubt should not defeat justice.

Arguments:

Prosecution (Appellant - Father of Deceased):

 The accused continuously harassed and taunted the deceased for dowry.

 The deceased was mentally tortured, leading her to commit suicide.

 The accused did not attempt to save her or provide immediate medical
assistance.

 The High Court wrongly acquitted the accused despite clear evidence.

Defense (Respondents - Husband & In-Laws):

 The death was accidental, not a suicide.

 The prosecution failed to prove instigation or direct abetment.

 The High Court rightly found contradictions in witness statements and

acquitted the accused.

Judgment:
 1. Reinstatement of Conviction: The Supreme Court held that the High
Court erred in disregarding circumstantial and direct evidence.

2. Application of Section 113A: The court presumed abetment as the

suicide occurred within seven years of marriage due to sustained cruelty.

3. Criticism of High Court's Reasoning: The SC found that the High Court
ignored crucial evidence and wrongly gave the accused the benefit of
doubt.

4. Final Verdict: Conviction of the accused under Section 306 IPC was
restored, and they were ordered to serve the remaining sentence.

Conclusion:

The Supreme Court reaffirmed the necessity of holding perpetrators of

dowry-related harassment accountable and emphasized that abetment to
suicide can be inferred from continuous mental and emotional cruelty.
This case is a landmark ruling in strengthening legal protections for women
against matrimonial cruelty.

****************END******************

IV. Banking & Negotiable Instrument Act

Q. 1) Role of SEBI in controlling Financial institution
The Securities and Exchange Board of India (SEBI), established in 1992
under the SEBI Act, is the principal regulator of the securities market in India.
Its primary functions revolve around protecting investor interests, ensuring
market transparency, and regulating financial institutions like stock
exchanges, mutual funds, brokers, merchant bankers, and credit rating
agencies.

Here’s a detailed breakdown of SEBI’s role:

1. Regulation of Financial Institutions

SEBI sets a comprehensive legal and regulatory framework for various financial
institutions involved in the securities market. This includes:

 Mutual Funds: SEBI monitors mutual fund operations to ensure investor

protection, fair valuations, and accurate disclosures. It ensures that
mutual funds adhere to standardized procedures in launching schemes,
pricing, and redemption.

 Stockbrokers and Sub-brokers: SEBI licenses and regulates brokers and

sub-brokers, ensuring they follow ethical and transparent practices while
dealing in securities.
  Merchant Bankers: Institutions responsible for managing IPOs, rights
issues, and private placements come under SEBI’s scrutiny to maintain
fairness and prevent misleading practices.

 Portfolio Managers: SEBI sets rules for portfolio management services,

ensuring these professionals manage their clients' investments
responsibly and transparently.

 Credit Rating Agencies (CRAs): Institutions like CRISIL, ICRA, and

CARE rate financial instruments; SEBI oversees their methodology,
ensuring unbiased and reliable credit ratings.

2. Protecting Investor Interests

One of SEBI’s core mandates is to safeguard investors, especially retail

investors, from fraud, malpractice, and exploitation. SEBI achieves this
through:

 Transparency and Disclosure Requirements: SEBI mandates listed

companies and financial institutions to disclose accurate financial
information regularly. This helps investors make informed decisions.

 Prevention of Insider Trading: SEBI has strict rules to prevent insider

trading — the unfair practice where individuals with access to
confidential information manipulate the market for personal gain.

 Investor Education and Awareness: SEBI conducts campaigns and

training programs to educate investors about the risks and rights
associated with securities investments.

3. Monitoring and Supervision

SEBI closely monitors the operations and performance of various financial

market participants to ensure they comply with legal and regulatory guidelines.
This includes:

 Surveillance of Stock Exchanges: SEBI oversees the functioning of

major stock exchanges like NSE and BSE, ensuring fair and smooth
trading operations.

 Inspections and Audits: SEBI conducts routine and surprise audits of

financial institutions to identify and rectify any non-compliance or
irregularities.

 Market Intelligence and Investigations: SEBI has a specialized

Integrated Surveillance Department (ISD) to track suspicious market
activity, detect price manipulations, and prevent market abuse.

4. Promoting Fair Trade Practices

To maintain investor confidence and market integrity, SEBI enforces rules that
prevent unfair practices like:

 Market Manipulation and Price Rigging: SEBI acts against individuals

or institutions artificially inflating or deflating security prices to mislead
investors.
  Unfair Trade Practices: SEBI monitors companies to prevent false or
misleading advertisements, non-disclosure of material information, and
deceptive financial reporting.

 Corporate Governance: SEBI mandates high standards of corporate

governance, ensuring listed companies maintain transparency,
accountability, and fairness in their operations.

5. Regulating Capital Markets

SEBI plays a vital role in overseeing capital-raising activities through:

 Initial Public Offerings (IPOs): SEBI scrutinizes the draft red herring
prospectus (DRHP) and final offer documents of companies launching
IPOs to ensure proper risk disclosures and fair pricing.

 Follow-on Public Offerings (FPOs) and Rights Issues: SEBI ensures

companies raising additional capital through these methods follow the
same level of transparency and fairness.

 Secondary Market Operations: SEBI regulates the buying and selling of

securities in secondary markets to prevent unfair trade practices and
ensure smooth functioning.

6. Approval of Financial Products

Before any financial institution launches new financial products or services,

they must obtain SEBI’s approval. SEBI ensures that:

 Risk Assessment: New products align with the risk appetite of the
targeted investor class and provide adequate safeguards.

 Compliance with Existing Regulations: SEBI checks if the product

complies with India’s legal and financial framework.

 Market Stability: SEBI evaluates whether the introduction of the product

could disrupt market stability or lead to excessive speculation.

7. Enforcement and Legal Action

SEBI has the power to take strict enforcement actions against financial
institutions or market participants violating its rules, such as:

 Imposing Penalties: SEBI can impose monetary penalties on institutions

engaging in malpractices like insider trading, non-compliance, or
misleading disclosures.

 Suspension of Trading: SEBI can suspend the trading of a particular

security or even debar a broker or institution from participating in the
market.

 Legal Proceedings: SEBI has the authority to initiate legal proceedings

and refer cases to special SEBI Courts for quicker resolution of financial
disputes and violations.
Conclusion
SEBI acts as the watchdog of India‘s financial market, ensuring that financial
institutions operate with transparency, fairness, and integrity. Through its
robust regulatory framework and proactive supervision, SEBI helps maintain
market stability, investor confidence, and the smooth functioning of
capital markets. It also plays a key role in evolving India’s financial ecosystem
by adapting its policies to meet modern challenges like cybersecurity, digital
trading platforms, and innovative financial products.

Q. 2) Role of RBI

The Reserve Bank of India (RBI) is the central bank of India and plays a
crucial role in the country’s financial and economic system. Established in
1935 under the Reserve Bank of India Act, it acts as the apex monetary
authority and is responsible for regulating and supervising India’s banking
and financial institutions. Let’s explore its role in detail:

1. Formulation and Implementation of Monetary Policy

The RBI‘s primary function is to formulate and implement monetary policy

to maintain price stability, control inflation, and promote economic growth.
This is done through:

 Controlling Money Supply: RBI manages the flow of money in the

economy to prevent inflation or deflation.
 Interest Rate Management: RBI adjusts the repo rate, reverse repo
rate, and other key rates to influence borrowing and lending in the
banking system.
 Liquidity Management: By using tools like Open Market Operations
(OMO) and Cash Reserve Ratio (CRR), the RBI controls the liquidity
available to banks.

2. Issuer of Currency

RBI is the sole authority for issuing the Indian Rupee (₹), ensuring the
adequate supply of currency and maintaining public confidence in the
country’s monetary system:

 Ensuring Currency Stability: RBI prevents counterfeiting and maintains

the quality of notes in circulation.
 Controlling Currency Supply: RBI manages the printing and distribution
of money based on the economic needs of the country.
 Currency Design and Security: RBI designs currency with advanced
security features to prevent forgery.

3. Regulator and Supervisor of Banks

RBI regulates and supervises the banking sector, ensuring financial stability
and public trust:
  Licensing of Banks: RBI grants licenses to new banks and monitors their
operations.
 Prudential Norms: RBI sets guidelines on capital adequacy, NPA (Non-
Performing Asset) management, and risk management.
 Inspections and Audits: RBI regularly inspects banks to ensure
compliance with regulations.
 Resolution of Banking Crises: RBI steps in during bank failures or
financial crises to protect depositors’ interests.

4. Regulation of Non-Banking Financial Companies (NBFCs)

Apart from banks, RBI also regulates NBFCs, ensuring their solvency and
compliance with financial laws:

 Registration and Licensing: RBI oversees the registration of NBFCs.

 Capital Requirements: Ensures NBFCs maintain sufficient capital to

avoid risks.

 Monitoring Activities: RBI tracks their lending practices and balance

sheet health.

5. Foreign Exchange Management (FEMA)

RBI manages India‘s foreign exchange reserves and regulates foreign
exchange transactions under the Foreign Exchange Management Act
(FEMA), 1999:

 Maintaining Exchange Rate Stability: RBI intervenes in the forex

market to stabilize the rupee’s value.

 Managing Forex Reserves: RBI ensures adequate foreign currency

reserves for international trade and payments.

 Authorizing Forex Transactions: RBI licenses dealers and ensures

compliance with foreign exchange rules.

6. Development and Regulation of Financial Markets

RBI plays a key role in developing money markets, government securities
markets, and foreign exchange markets:

 Controlling Interest Rates: Through its policies, RBI influences the

bond market and lending rates.

 Managing Public Debt: RBI helps the government borrow money by

issuing bonds and securities.

 Promoting Financial Innovation: RBI encourages digital payments and

fintech innovations.

7. Custodian of Foreign Exchange Reserves

RBI maintains India‘s foreign exchange reserves to ensure external stability
and the ability to manage international obligations:

 Stabilizing the Rupee: RBI intervenes in the market to manage currency

volatility.
  Ensuring Adequate Reserves: RBI keeps reserves to cover import
payments and debt obligations.

 Investment of Reserves: RBI invests reserves in safe foreign assets to

earn returns and maintain liquidity.

8. Lender of Last Resort

When commercial banks face liquidity crises, the RBI steps in as the lender of
last resort:

 Providing Emergency Funds: RBI lends to banks facing a shortage of

funds.

 Maintaining Stability: By preventing bank failures, RBI ensures

financial system stability.

9. Consumer Protection and Financial Inclusion

RBI ensures fair treatment of customers and promotes banking services for
all:

 Grievance Redressal: Through Banking Ombudsman, RBI resolves

customer complaints.

 Financial Literacy Programs: RBI educates people on banking

practices, digital transactions, and financial planning.

 Encouraging Rural Banking: RBI promotes the expansion of bank

branches in remote areas.

10. Digital Payments and Innovation

RBI encourages the growth of digital payment systems and fintech
innovations:
 Unified Payments Interface (UPI): RBI’s support has led to the
widespread adoption of UPI.

 Regulation of Payment Banks: RBI supervises payment banks and

digital wallets.

 Promoting Cybersecurity: RBI ensures financial institutions strengthen

digital security to protect customers.

Conclusion

RBI acts as the backbone of India‘s financial system, ensuring economic

stability, monetary discipline, and public trust. Through its regulatory
functions, supervisory role, and monetary policy tools, the RBI safeguards
financial institutions and ensures inclusive and sustainable economic
growth.

Q. 3) Silent Features of Debt Recovery Tribunal

The Debt Recovery Tribunal (DRT) is a quasi-judicial body in India
established under the Recovery of Debts and Bankruptcy Act (RDB Act),
1993. It was created to expedite the recovery of debts due to banks and
financial institutions. Let’s take a closer look at the key features of DRT:

1. Objective and Purpose

  Specialized Debt Recovery: DRT deals exclusively with cases related to
non-performing assets (NPAs) and the recovery of secured and
unsecured loans.

 Speedy Resolution: It ensures quick disposal of cases, avoiding the

delays of civil courts.

 Enforcement of Security Interest: DRT also handles cases under the

SARFAESI Act, 2002, allowing banks to seize and sell assets of
defaulting borrowers without court intervention.

2. Jurisdiction and Power

 Monetary Limit: DRT handles cases involving debt recovery of ₹20 lakhs
or more. Cases involving lower amounts go to civil courts or small
causes courts.

 Nationwide Coverage: There are multiple DRTs across India, with Debt
Recovery Appellate Tribunals (DRATs) for appeals.

 Wide Powers: DRT can issue orders like:

o Attachment of property

o Appointment of receivers

o Execution of recovery certificates

o Restoration of possession

3. Composition of DRT

 Presiding Officer: The DRT is headed by a Presiding Officer, who is

usually a District Judge or someone with equivalent judicial experience.

 Assistance of Recovery Officers: Recovery officers help in

implementing DRT‘s orders, such as seizing properties and executing
recovery certificates.

4. Procedure of DRT

 Simplified Process: DRT follows summary procedures, making it faster

and more efficient than civil courts.

 E-Filing and Virtual Hearings: Many DRTs have started online filing
systems and virtual hearings to speed up the process and reduce
paperwork.

 Limited Adjournments: To prevent delays, DRT discourages frequent

adjournments and focuses on timely disposal.

5. Filing of Cases

 Application by Banks or Financial Institutions: Banks file a case under

the RDB Act for loan recovery or under SARFAESI Act for enforcing
security interests.

 Time-bound Proceedings: DRT aims to resolve cases within 180 days

from the date of filing.

 No Civil Court Intervention: Once a case is filed in DRT, civil courts

lose jurisdiction over the matter.
6. Appeals and Review

 Debt Recovery Appellate Tribunal (DRAT): Appeals against DRT orders

go to the DRAT within 45 days of the decision.

 Deposit Requirement: To file an appeal, the borrower must deposit 50%

of the debt amount as determined by the DRT (can be reduced to 25% in
special cases).

7. Enforcement of Orders
 Recovery Certificate: After judgment, DRT issues a recovery certificate
to the recovery officer for executing the order.
 Attachment and Auction: DRT can attach movable and immovable
property and conduct auctions for debt recovery.

8. Flexibility and Fairness

 Compromise and Settlement: DRT encourages amicable settlements
between banks and borrowers.
 Opportunity to Defend: Borrowers get a fair chance to present their
case and challenge recovery actions.

Conclusion
The Debt Recovery Tribunal plays a vital role in strengthening the financial
system by ensuring speedy and efficient recovery of debts. It provides a fair
and streamlined mechanism for both banks and borrowers, balancing
recovery needs with legal protection.

Q. 4) Establishment of Debt Recovery Tribunals-Constitution &

Functioning

1. Establishment of Debt Recovery Tribunals (DRTs)

Background:
Before the establishment of DRTs, banks and financial institutions had to
approach civil courts for debt recovery. Due to backlogs and delays, the
Recovery of Debts Due to Banks and Financial Institutions (RDB) Act, 1993
was enacted. This led to the formation of DRTs to ensure speedy and efficient
recovery of debts.

Objective:
 Quick disposal of cases involving recovery of ₹20 lakhs or more.
 Exclusive jurisdiction for cases involving debt recovery by banks and
financial institutions.
 Minimize non-performing assets (NPAs) and strengthen the financial
sector.

Location:
DRTs are established across India based on the volume of cases and
geographical requirements. Debt Recovery Appellate Tribunals (DRATs)
handle appeals from DRT orders.

2. Constitution of DRTs
Legal Framework:

 RDB Act, 1993: Primary law governing the establishment and powers of
DRTs.
  SARFAESI Act, 2002: Empowers DRTs to handle cases related to
securitization and enforcement of security interests.

Structure:
 Presiding Officer (PO): Head of the DRT, equivalent to a District Judge.
Appointed by the Central Government for a 5-year term or until the age
of 62 (whichever is earlier).

 Recovery Officer: Executes recovery certificates, seizes property, and

enforces orders passed by the DRT.

 Supporting Staff: Clerical and administrative staff assist in day-to-day

operations.

Debt Recovery Appellate Tribunal (DRAT):

 Appellate body for appeals against DRT orders.

 Headed by a Chairperson, equivalent to a High Court Judge.

3. Jurisdiction of DRTs
Monetary Jurisdiction:
 ₹20 lakhs and above: Cases below this amount are handled by civil
courts.

Subject Matter Jurisdiction:

 Recovery of loans and advances by banks and financial institutions.
 Cases under SARFAESI Act, 2002 related to enforcement of security
interests.

Exclusion of Civil Courts:

Once a matter is filed in DRT, civil courts lose jurisdiction over that case.

4. Powers and Functions of DRTs

Powers:
 Issue recovery certificates to enforce debt recovery.

 Attach and sell movable and immovable property.

 Summon witnesses and require production of documents.

 Adjudicate claims and counterclaims.

Functions:
 Hear applications filed by banks and financial institutions for loan
recovery.

 Handle cases where borrowers default on loans and their assets need
enforcement.

 Ensure speedy adjudication and recovery processes.

5. Procedure of DRTs
Filing of Applications:
 Banks/financial institutions file a Debt Recovery Application (DRA)
with supporting documents.

 Defendants (borrowers) are notified and given a chance to present their

defense.
Hearing and Adjudication:
 DRT follows a summary procedure for quick disposal.

 Limited adjournments to avoid unnecessary delays.

 Cases are ideally resolved within 180 days.

Issuance of Recovery Certificate:

Once the case is decided, a recovery certificate is issued, specifying the debt
amount and interest.

Execution of Orders:
 Recovery Officer enforces orders by seizing and selling property,
freezing accounts, etc.
 Ensures timely execution of recovery certificates.

6. Appeals and Review

Appeal to DRAT:
 Parties can appeal against a DRT order to DRAT within 45 days.
 Appellant must deposit 50% of the debt amount (can be reduced to 25%
by DRAT).

7. Conclusion
The Debt Recovery Tribunals play a critical role in strengthening the banking
and financial sector by ensuring timely recovery of debts. Through their
efficient structure and streamlined procedures, DRTs minimize delays,
reduce NPAs, and protect the interests of financial institutions while
ensuring fairness for borrowers.

Case-Laws:

1. Pawan Kumar Vs. Ashish Enterprises, 30th August, 1991

This case involves three criminal applications challenging the orders of the
Chief Judicial Magistrate (CJM) of Amravati, who took cognizance of offenses
under Section 138 of the Negotiable Instruments Act, 1881, and Section 420 of
the Indian Penal Code (IPC). Summonses were issued based on these orders.

Case Details:

1. Application No. 433 of 1991:

o Complainant: Ashish Enterprises, represented by partner Bansilal

Baijanath Jaju.

o Allegation: A loan of ₹25,000 was given on June 6, 1989. The

accused issued post-dated cheques, which were dishonored.

2. Application No. 569 of 1991:

o Complainant: Govind Bansilal Jaju.

o Allegation: ₹25,000 was deposited with the accused on June 25,

1989. The post-dated cheques issued were dishonored.
 3. Application No. 448 of 1991:

o Complainant: Subhash Dwarkadasji Heda.

o Allegation: A loan of ₹50,000 was given on June 5, 1989, and the

post-dated cheques were dishonored.

Arguments:

 For the Accused: The defense argued that Section 138 applies only when
cheques are dishonored due to "insufficient funds" or when the amount
exceeds the account's arrangement. Other reasons, like signature
mismatch, payment stopped, or account closure, do not attract this
section.

 For the Complainants: The prosecution claimed the accused knowingly

issued cheques that would bounce, showing fraudulent intent and
making the case valid under Section 420 IPC.

Key Judicial Precedents:

 State of Maharashtra v. Laxmi Narsimhan (1977): Emphasized strict

interpretation of penal statutes.

 Rangappa v. Mohan (2010): Clarified the presumption of liability when a

cheque is dishonored.

 Kumar Exports v. Sharma Carpets (2009): Stated the accused can rebut
liability by raising a probable defense.

 Calcutta Sanitary Wares v. C.T. Jacob (1991): Observed that the issuance
of cheques, their dishonor, and failure to pay despite demand notices
establish a prima facie case under the Act, even if payment was stopped
by a countermand memo.

 Trilok Singh v. Satya Deo Tripathi: Held that criminal proceedings should
be quashed when the dispute is purely of a civil nature.

 Shyam Sundar v. Lala Bhawan Kishore (1989): Ruled that dishonored

post-dated cheques without initial dishonesty constitute civil liability, not
cheating.

 Ravindra Sonusing Patil v. Smt. Rajendra Pandit Patil (1991): Stated that
criminal courts can take cognizance if the complaint shows elements of a
criminal offense, even if civil liability exists.

Judgment:

The court, after considering the arguments and judicial precedents, dismissed
all three applications. It held that the elements of an offense under Section 138
of the Negotiable Instruments Act and Section 420 IPC were sufficiently made
out in the complaints and verification statements. The court observed that
merely because a civil remedy exists does not preclude criminal proceedings if
the facts disclose elements of criminal intent. The court further noted that the
accused’s habitual issuance of dishonored cheques demonstrated a pattern of
dishonest behavior, justifying the continuation of the criminal proceedings.

Conclusion:

The main issue is whether the reasons for cheque dishonor meet the
requirements of Section 138. The defense argues they don’t, while the
prosecution emphasizes the accused’s fraudulent intent. The case requires a
detailed trial to determine the accused’s liability.

2. Prakash Chandra Vs. State & ors, 22nd July, 2009

Brief:

The Negotiable Instruments Act, 1881 (N.I. Act) governs offenses related to
dishonor of cheques, particularly under Section 138, which deals with cases
where a cheque is dishonored due to insufficient funds. This provision outlines
a special legal procedure for handling these offenses. The Supreme Court in
several cases, including the one under discussion, clarified the relationship
between provisions of the N.I. Act and the Criminal Procedure Code (Cr.P.C.).
Specifically, the Court addressed the mandatory nature of Section 200 Cr.P.C.
in the context of complaints filed under Section 138 of the N.I. Act, arguing
that the procedure laid down in the Cr.P.C. cannot be bypassed, even for
offenses under special laws.

Facts:

In the case before the Supreme Court, the key issue was whether Sections 142
and 145 of the Negotiable Instruments Act override the provisions of Section
200 Cr.P.C., which mandates the examination of the complainant and
witnesses under oath before the Magistrate proceeds to take cognizance of the
offense under Section 138 of the N.I. Act.

The Magistrate had taken cognizance of the offense and proceeded without
examining the complainant and his witnesses under oath, arguing that the
provisions of the N.I. Act allowed for summary procedures, including the
submission of evidence through affidavit.

Legal Aspects:

1. Cognizance of Offense:

o Section 142 of the N.I. Act specifies that no court shall take
cognizance of an offense under Section 138 of the N.I. Act except
upon a written complaint filed by the payee or holder in due
course, and that such complaints must be made within one month
from the date the cause of action arises.

2. Examination of the Complainant:

 o Under Section 200 of the Cr.P.C., the Magistrate is required to
examine the complainant and any witnesses on oath before taking
cognizance and issuing process. This is a mandatory requirement
under the Cr.P.C. and forms part of the basic procedural
safeguards.

3. Summary Trial:

o Section 143 of the N.I. Act provides for the summary trial of
offenses under Chapter XVII, including dishonor of cheques. The
provision aims to expedite the process of trial to ensure swift
justice.

4. Service of Summons:

o Section 144 provides a special mode of service of summons that

allows for the use of speed post or courier services for delivering
summons to the accused or witness, even if they refuse to accept it.

5. Evidence by Affidavit:

o Section 145 allows the complainant to present evidence via

affidavit, facilitating an expedited process, but does not remove the
requirement for the complainant's examination under Section 200
Cr.P.C..

Sections & Acts:

 Negotiable Instruments Act (N.I. Act):

o Section 138: Deals with the offense of dishonor of a cheque due to

insufficient funds.

o Section 142: Specifies that the complaint must be made within one
month of the cause of action, and cognizance can only be taken on
such a complaint.

o Section 143: Provides for summary trials in dishonor cases.

o Section 144: Specifies the mode of service of summons.

o Section 145: Allows evidence to be given via affidavit.

 Criminal Procedure Code (Cr.P.C.):

o Section 200: Mandates the examination of the complainant and

witnesses under oath before proceeding with the case.

o Section 204: Allows the Magistrate to issue process after taking

cognizance, provided the complainant has been examined.

Arguments:

1. Petitioner's Argument:
 o The petitioner argued that the Magistrate failed to follow the
procedure laid down under Section 200 Cr.P.C., specifically the
examination of the complainant and witnesses under oath
before issuing process under Section 204 Cr.P.C.. The petitioner
contended that such examination is a mandatory step and cannot
be bypassed, even in cases under the Negotiable Instruments Act,
which provides for a summary trial.

2. Respondent's Argument:

o The respondents contended that the provisions under Sections

142 to 146 of the N.I. Act allowed for an expedited process,
including summary trials and the presentation of evidence via
affidavit. They argued that these provisions were meant to
streamline the process and could be interpreted as allowing for the
bypassing of the examination of the complainant under Section
200 Cr.P.C..

Judgment:

The Supreme Court ruled in favor of the petitioner and clarified several key
points:

1. Section 142 and 145 of the N.I. Act do not override Section 200
Cr.P.C.:

o The Court concluded that the provisions of Section 142 and

Section 145 of the Negotiable Instruments Act cannot override
the mandatory requirement of Section 200 Cr.P.C., which
demands that the complainant and witnesses be examined under
oath before the Magistrate can proceed with issuing process under
Section 204 Cr.P.C..

2. Mandatory Examination of the Complainant:

o It was determined that the Magistrate is duty-bound to examine

the complainant and witnesses before proceeding with the case. The
examination should ideally take place on the same day the
complaint is filed or on the next available date.

3. Basic Procedure under the Cr.P.C.:

o The Court emphasized that examining the complainant and

witnesses is a basic procedural requirement under the Cr.P.C.,
and this procedure cannot be overlooked or waived based on delays
or the provisions of the Negotiable Instruments Act.

4. Impact of Delay:

o The Court also highlighted that the time it takes to examine the
complainant would not be lengthy, and this examination should be
completed without delay, as mandated by law. Even if there is delay
 in disposing of complaints under the N.I. Act, the legal procedure
must be followed.

5. Quashing of the Impugned Orders:

o The Supreme Court quashed and set aside the impugned orders
dated 18.07.2007 and 13.05.2009, ruling that the Magistrate's
action of proceeding without examining the complainant and
witnesses was improper.

Conclusion:

The Supreme Court concluded that the procedure for examining the
complainant and witnesses under oath before proceeding with a case under
Section 138 of the N.I. Act is mandatory and cannot be bypassed. The
Magistrate must adhere to the procedure under Section 200 Cr.P.C. before
taking cognizance and issuing process, ensuring that the legal safeguards are
followed.

 Order: The impugned orders were quashed and set aside, and the
Magistrate was directed to follow the due process under the Cr.P.C..

 Further Direction: Recognizing the importance of this issue, the

Supreme Court directed that a copy of the judgment be circulated to all
Magisterial Courts in the State to ensure that subordinate courts
properly follow the requirements of Section 200 Cr.P.C. in cases
involving Section 138 of the N.I. Act.

This judgment underscores the importance of following proper procedure, even

in cases of summary trials under special laws, ensuring fairness and adherence
to established legal norms.

3. Kirlampudi Sugar Mills ltd Vs. Venkata Rao, 08th October, 2002

Brief:
The appeal in this case arises from the suit filed by the plaintiff (Venkata Rao)
for the recovery of Rs. 48,882.40, which is due from the defendants
(Kirlampudi Sugar Mills Ltd.) on a promissory note executed by the 1st
defendant on 30th March 1982. The trial court had decreed the suit, and
defendants 2 and 3, who are part of the management, challenged the decision in
appeal.

Facts:
The plaintiff filed the suit in 1984 for the recovery of Rs. 48,882.40, which
included the principal and interest on a promissory note executed by the 1st
defendant. The note was for Rs. 40,000 borrowed by the 1st defendant, acting
as the Chief Executive of Kirlampudi Sugar Mills Ltd., to pay the company’s
electricity dues. The 1st defendant did not contest the case, but defendants 2
and 3, who assumed control of the company’s assets, challenged the ruling.

Legal Issues:
 1. Liability of Defendants 2 and 3: Whether the new management
(defendants 2 and 3) should be held liable for the debt incurred by the 1st
defendant in his official capacity.

2. Cause of Action: Whether the plaintiff has a valid cause of action against
defendants 2 and 3.

3. Burden of Proof: Whether the trial court properly assessed the burden of
proof in line with Section 118 of the Negotiable Instruments Act, 1881.

4. Relief: To what relief, if any, the plaintiff is entitled.

Arguments:

 Defendants 2 and 3's Argument:

o Defendants 2 and 3 argued that the 1st defendant executed the

promissory note in his personal capacity, not on behalf of the
company.

o They claimed that the company’s books did not reflect the loan, so
they should not be held liable for repayment.

 Plaintiff's Argument:

o The plaintiff maintained that the 1st defendant borrowed the money
for the company’s benefit and executed the promissory note in his
capacity as Chief Executive.

o The plaintiff also argued that the new management should be held
liable as they assumed control of the company and its liabilities.

Judgment:
The trial court ruled in favor of the plaintiff, holding defendants 2 and 3 liable
for the debt. The judgment was based on the following points:

 Authority of 1st Defendant: The court held that the 1st defendant had
the authority to borrow money on behalf of the company and executed the
promissory note in his official capacity.

 Liability of New Management: The court ruled that defendants 2 and 3,

as the new management, were responsible for the company’s debts,
including the loan taken by the 1st defendant.

 Burden of Proof: The court found that the plaintiff had satisfactorily
proved the execution of the promissory note with the evidence of P.W. 1
and P.W. 2. The trial court also properly assessed the burden of proof
under Section 118 of the Negotiable Instruments Act.

Summary of Legal Considerations:

The appellate court considered the following points raised in the appeal:

1. Liability of Defendants 2 and 3: The court examined whether

defendants 2 and 3, as new management, should be held liable under the
promissory note executed by the 1st defendant.
 2. Cause of Action: The court assessed whether the plaintiff had a valid
cause of action against defendants 2 and 3, given that the 1st defendant
executed the note in his official capacity.

3. Burden of Proof: The court reviewed whether the trial court properly
evaluated the burden of proof in line with the law, particularly regarding
the validity of the promissory note.

4. Relief: The court ultimately upheld the trial court’s decision, granting the
plaintiff the relief sought.

Conclusion:
The appeal by defendants 2 and 3 was dismissed, and the trial court's decision
was upheld. The new management was held liable for the outstanding amount
under the promissory note executed by the 1st defendant. This case reinforces
the principle that the management of a company can be held accountable for
the debts incurred by its officers in the course of business, even after a change
in leadership.

****************************************END*************************************

DCP-III

Q. 1) Legal Notice- Winding up under Companies Act, 1956

SPEED POST/REGISTERED POST WITH A/D.

Dated:

To

__________

__________

Dear Sir(s),

Re: Notice under section 434 (a) of the Companies Act, 1956 for winding
up of the addressee Company due to outstanding debt amount of
Rs. ______________/- (Rupees ____________________ only) along with interest @
18% per annum pending payment.

Our Client: ________________M/s. ABC Bank______________________

Mumbai- 400 001

———————————————————————————————————

We write under instructions of our abovementioned Client and state as under:

1. That sometime _________________________ you approached the principal officers

of our client with a request to avail loan amount of Rs. __________________/- (
Rupees ______________ only) ) (hereinafter referred to as “said loan”) inter alia,
 on condition that the said loan shall be for a tenure of ___________ days and the
said loan amount shall bear interest @ _____ % per annum.

2. That in view of the aforesaid, on _______________ our client remitted to you a

sum of Rs. ___________________/- through its ___________ Bank Account No.
____________________ vide RTGS UTR No. ____________________ to your Bank
Account No.______________ held with ________________________. The said loan
was granted to you for the agreed period of __________ days only, having the
maturity date as _______________.

3. That on or about _________________ you have refunded a sum of Rs.

______________/- on account of the loan amount which matured on
______________, thereby reducing the balance principal dues against the loan
amount to Rs. ___________/- ( Rupees ______________ only).

4. That in view of the aforesaid, the loan amount stood reduced to Rs.
___________________/- and in partial discharge of your existing legal liability
and/or debts arising out of the reduced loan amount, you issued and forwarded
to our client a cheque bearing ____________ dated ___________ for payment of
outstanding principal dues of Rs. ________________/- drawn on _____________.

5. That our client presented the said abovementioned cheque No. ___________ for
encashment within its validity period with its banker, viz.,
_____________________. However, to our client’s utter surprise the said cheque
was returned unpaid and dishonoured vide dishonor return memo dated
________________ with the endorsement “Not arranged for/Funds Insufficient”,
information whereof was received by our client on ________________. Further,
under the cover of an undertaking letter dated ______________ you had assured
our client that the aforesaid cheque shall be encashed upon presentation and
will not be stopped under any circumstances, nor the Bank account closed and
neither will you change the authorized signatories of the Bank.

6. That pertinent to the aforementioned facts, our client constantly pressed for the
payment of the outstanding dues against for a total amount of Rs.
_______________/- (Rupees ___________ only) along with interest @ 18% per
annum accruing and rising every day thereby from you and the same is still
pending payment.

7. That thereafter, since you have failed to pay heed to our client’s constant
requests, our client was pained to issue and send legal notice to you dated
__________ through their advocates demanding payment of the outstanding dues
and interests accruing thereon upto the date of re-payment of your loan
obligations.

8. That vide your letter dated ____________ sent to the advocates of our client as
reply letters to the aforementioned legal notices, you have intentionally,
deliberately, mischievously and with malafide intention alleged that you are not
liable to pay to our client the outstanding dues of Rs. _____________/- (Rupees
__________ only) along with interest @ 18% per annum accruing and rising every
day.
9. That in view of the above, it is highly irrational and unethical on your part to
have enjoyed the total amount of Rs. ____________/- (Rupees ____________ only)
by taking undue and unfair advantage of our client gave you the loan amount
for your benefit in your time of crisis under the impression that the entire loan
amount along with interest accrued thereon will be returned by you within the
agreed time.

10. That you have grossly attempted to enrich yourself in an illegal manner
and you have acted against the interest of morality in attempting to usurp the
hard-earned money of our client by retaining the total amount Rs.
____________/- (Rupees ____________ only) along with interest @ 18% per annum
accruing and rising every day and failing to return the same within the agreed
time.

11. In view of abovementioned facts and circumstances, our client being a

creditor of your Company and you being indebted to our client for a sum of total
amount of Rs. ____________/- (Rupees ____________ only) along with interest @
18% per annum accruing and rising every day thereupon as on date and we, on
behalf of our client, hereby call upon you and make demand for payment of the
entire outstanding dues of the Rs. ____________/- (Rupees ____________ only)
along with interest @ 18% per annum accruing and rising every day from the
due date/maturity date of the outstanding dues against the loan amount, till
the date of payment, by Pay Order drawn in favour of our client within a period
of 21 days from the date of receipt of this notice, failing which, our client shall
be constrained to initiate appropriate proceedings under sections 433, 434 and
439 of the Companies Act, 1956, at your peril, costs and consequences thereof,
which please note. Needless to mention, our client shall further resolve to other
legal remedies criminal and civil, available under the law.

Please treat this Notice as a statutory notice under section 434 (a) of the
Companies Act, 1956 and also as a notice under the Interest Act, 1978.

This notice is without prejudice to our client’s rights in any other proceedings
which have already been initiated/filed and/or may be initiated/filed before any
Court of Law with regard to the aforementioned dues.

Please acknowledge receipt of this letter.

Thanking you.

Advocate

Copy to: Client

Q.2) Testamentary Petition for Succession Certificate

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

TESTAMENTARY AND INTESTATE JURISDICTION
PETITION NO. OF 2021
 Petition for Succession Certificate in respect of certain

Securities belonging to Ishwardas Narrotamdas Sheth

alias Ishwardas Sheth, Widower, Occu: Business,

Hindu, Indian Inhabitant of Mumbai, who was residing at

the time of his death at H/4, Bhavana Society, S. V.

Road, Kandivali (W), Mumbai – 400 067.

……..Deceased
Niranjan Ishwardas Sheth, Aged 74, years, )

Occupation: Business, Hindu, Indian )

Inhabitant of Mumbai, Residing at H-wing, )

Block No.4, Prem Bhavan C.H.S. Limited, )

S. V. Road, Near Municipal Hospital, Kandivali ) (West), Mumbai -

400067, being the son of the )

deceased abovenamed ) ……..Petitioner

TO,
THE HONOURABLE CHIEF JUSTICE
AND OTHER USINE JUDGES OF THIS
HON’BLE HIGH COURT OF JUDICATURE
AT BOMBAY.
---------------------------------------------------

THE HUMBLE PETITION OF THE

PETITIONER ABOVEBNAMED:
---------------------------------------------

MOST RESPECTFULLY SHEWETH:-

1. That the abovenamed Ishwardas Narrotamdas Sheth alias Ishwardas

Sheth, was died at Kandivali (West), Mumbai, on or about 26 th day of May,

2000. Hereto annexed and marked as EXHIBIT "A" is the copy of Death

Certificates.
2. That the said deceased resides at , permanent address at H/4, Bhavana

Society, S. V. Road, Kandivali (W), Mumbai – 400 067. and/or left property

within Greater Mumbai in the State of Maharashtra.

3. That the said both deceased died intestate and that due and diligent search

had been made for a Will but none has been found.

4. That the said deceased Ishwardas Narrotamdas Sheth alias Ishwardas

Sheth, died Widower, at the time of his death and his surviving the following as

his only heirs and next-of-kin according to Hindu Succession Act,1956, who are

residing at the address stated against their respective names.

Sr. Name Age Relation with

No. deceased
1 Niranjan Ishwardas Sheth, 74 Son

Residing at H-wing, Block No.4,

Prem Bhavan C.H.S. Limited, S.

V. Road, Near Municipal

Hospital, Kandivali (West),

Mumbai - 400067

2 Varsha Manoj Bhuta, 63 Married daughter

residing at 90/14, Gitanjali,

Sewree Wadala Scheme No.57,

road No.14, Near National

Kannada High School, Wadala,

 Mumbai – 400031.

3 Mamta Ketan katakia 60 Married Daughter

Residing at 6382 Lisgar Dr

Mississauga, on L5N 6X1,

Ontario, Canada

The parents and wife of deceased pre-deceased the deceased, the deceased has left

no any daughter and no any son except the above. That save and except

mentioned above there are no legal heirs and next of kin left by the deceased.

5. That the Petitioner being the Son of deceased claims to be entitled of the 1/3 rd

share in the estate left by the deceased.

6. That there is no impediment under section 370 of India Succession Act, 1925

or under any other provisions of this act or any other enactment to the grant of the

certificate or the validity thereof, if it was granted.

7. That the Petitioner have set forth in Schedule-1 hereto annexed and marked

as EXHIBIT ‘B’. All the Securities for which the Certificate is applied for, The

Succession Certificate is required for the purposes of claiming of the amount from

Securities Shares. The said Securities in respect of which the Succession Certificate

is required are of the value of Rs.4,50,351.00 (Rupees Four Lacs Fifty Thousand

Three Hundred Fifty One Only)

8. That no application has been made to any District Court or District delegate

or to any other High Court for probate of any Will of the said deceased or for

Letters of administration with or without the Will annexed to property and credits.

9. That no application has been made to any District Court or District

Delegate or to any High Court for Succession Certificate in respect of any

securities belonging to estate of the deceased above named.

10. That the delay if any making this present Petition is on account of the fact

that the Petitioner is ignorant and unaware of obtaining any legal representation.

Now the Petitioner has been recently advice to obtain a legal representation.

Hence this Hon’ble Court in the interest of justice may condoned the delay.

THE PETITIONER, THEREFORE PRAYS;

(a) That the Succession certificate may be granted to the Petitioner in

respect of the Securities on set forth in Schedule-1 hereto with power to

collect the said Securities and to received dividend and negotiate or

transfer the said Securities thereon.

Niranjan Ishwardas Sheth

Petitioner
Advocate for the Petitioner

VERIFICATION

I, Niranjan Ishwardas Sheth, 74 years, Hindu, Indian Inhabitant of

Mumbai, the petitioner above named do hereby solemnly declare and that what is
stated of paragraphs 1 to 10 of the petition are true to my own knowledge, and I

believe the same to be true.

Solemnly declared at Mumbai ) Niranjan Ishwardas Sheth

On this day of ……………..2021) Petitioner

Identified by me, Before me.

Advocate for the Petitioner

Case-Law: Chairman And Managing Director Fci vs Jagdish Balaram

Bahira on 6 July, 2017
Brief Summary:

The case involves a dispute between the Chairman and Managing Director of
Food Corporation of India (FCI) and Jagdish Balaram Bahira regarding the
legality of his termination from the FCI. The issue at hand was the authority of
the FCI in taking disciplinary action and whether the termination of Bahira’s
employment was legally justified.

Facts:

 Background: Jagdish Balaram Bahira, an employee of the Food

Corporation of India (FCI), was dismissed from service after being found
guilty of certain charges in a departmental inquiry. He challenged the
termination on the grounds that the charges against him were not
substantiated and that the termination was disproportionate to the
allegations made.

 Central Issue: The core issue was whether the disciplinary action taken
by FCI, leading to Bahira’s dismissal, was legally valid. The key questions
were the authority of FCI to take such action and whether the procedural
requirements for such a dismissal were followed.

Legal Grounds:

1. Employment Law: The issue of termination was grounded in employment

law, specifically concerning the due process of disciplinary actions in
public sector organizations.

2. Procedural Fairness: The Court examined whether the procedures

followed during the departmental inquiry were in line with the principles
 of natural justice and whether the employee was given a fair opportunity
to defend himself.

3. Judicial Review: The case also dealt with the scope of judicial review in
employment matters, particularly in relation to disciplinary actions taken
by public sector undertakings.

Arguments:

 Petitioner‘s Argument (FCI): FCI argued that the dismissal of Jagdish

Balaram Bahira was based on substantial grounds established through
an internal departmental inquiry. It contended that the procedural
requirements were adhered to and that the decision was within the lawful
authority of the corporation.

 Respondent‘s Argument (Jagdish Balaram Bahira): Bahira argued that

the charges against him were not substantiated with adequate evidence
and that the procedural fairness in the inquiry was compromised. He
claimed that the termination was disproportionate to the alleged
misconduct and violated his rights as an employee.

Judgment:

 On Authority and Procedure: The Supreme Court held that FCI had the
authority to take disciplinary action against Bahira, as the allegations
were proven through an inquiry. The Court stressed that the procedures
followed by FCI were in line with the prescribed rules and regulations for
conducting a disciplinary inquiry.

 On Disproportionate Punishment: The Court also observed that the

penalty of dismissal must not be disproportionate to the charges. It was
noted that the inquiry report and evidence must justify the severity of the
punishment, and the Court decided to assess whether the punishment in
this case was appropriate under the circumstances.

 Judicial Review: The Court concluded that while disciplinary matters are
generally within the authority of the employer, judicial review is available
to ensure that the action taken is reasonable, fair, and in accordance with
the law.

Conclusion:

The Supreme Court upheld the authority of FCI in taking disciplinary action
against Jagdish Balaram Bahira but also highlighted the need for procedural
fairness and proportionality in punishment. The Court's ruling emphasized the
balance between the employer's authority and the employee's right to fair
treatment in disciplinary matters. Ultimately, the judgment affirmed the validity
of FCI’s action, provided it was in line with established procedures and
principles of natural justice.
XXXXXXXXXXXXXXX The End XXXXXXXXXXXXXXXXXX